Interim Agreement

An Interim Agreement is an agreement which regulates the financial relationship between Vehicle and Asset Finance and a customer as an interim solution until such time as it is superseded by a main agreement which could be in the form of an Instalment Sale or Financial Lease

In terms of an Interim Agreement Vehicle and Asset Finance contracts with the customer to the effect that: Vehicle and Asset Finance will import and/or purchase the goods as the case may be;

The customer will assemble or be responsible for the assembly of the goods.

Periodic draw-downs will be made as agreed upon, and on commissioning, Vehicle and Asset Finance will either sell or lease the goods to the customer

  • Highlights

    • Customers own Letter of Credit and Forward Exchange facilities are not impacted as the VAF facility is utilized
    • Management of risk to both customer and Bank through ensuring that all Supply  terms are negotiated in line with Bank requirements
    • The reputation of the Standard Bank in international banking circles creates comfort for foreign suppliers who may be more receptive to accepting sight or deferred payments rather than upfront payment
    • Guidance is offered with regards import requirements , i.e. Import permits and Letters of Authority issued by the Department of Trade and Industry
    • Customers cash flow is not impacted
    • The main agreement will be entered into only once the goods have been delivered and/or commissioned and the final payment to the supplier has been made
    • The terms of the interim agreement may be amended, as agreed to by credit, to provide for any unforeseen delays or increase in the overall pricing
  • Related Products

  • How to Apply

    Sole Proprietor’s

    Click here to complete your online application

    Legal Entities

    Click here to complete your contact details for a consultant to call you back

    Existing Standard Bank account holders, contact your account executive or relationship manager

    Call the Standard Bank Branch Contact Centre on 0860 101 341 and ask for your preferred branch

    Contact us
    0860 000 000

    For any specialised asset queries please send an email

  • Show Me More

    • Vehicle and Asset Finance will import the capital goods on behalf of the customer and as the importer ensures strict compliance with Exchange Control and Excise regulations
    • Payments to foreign supplier via a letter of credit instrument ( sight and usance)
    • When required will arrange multiple letters of credit to various suppliers under one interim agreement, typically for large projects. This may be done in conjunction with payments to local suppliers
    • Purchase of forward cover on behalf of the customer utilizing our own facilities
    • Direst liaison with the supplier/s with regards the preparation of documents and instructions
    • The transaction is handled ‘end to end’ by the Interims Sales Team
    • Liaison with clearing agents with regards clearance requirements
    • Tracking of documents and the timeous delivery to the appointed clearing agents
    • Payment of Customs Vat to the clearing agent in the case of imports
    • Facilitate progress payments to local suppliers
    • Issue payment guarantees to local suppliers when required in line with agreed payment terms
    • Repayments are limited to interest collection during the life of the interim agreement unless capital repayments are specifically required by credit

    Additional Resources

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