Partner banks finance import duty, taxes and freight so importers can clear goods quickly. VSM does not lend. The bank pays URA and the transporter direct. VSM secures the imported goods from the customs bond until the bank orders their release.
What we do
- Lodging the facility application with the bank
- Proposing the market value read against the URA tax value
- Moving cleared cargo with our logistics partner to the agreed premises
- Issuing a stock certificate in the bank’s name
- Holding cover of three to five times the loan value
- Releasing goods on the bank’s order after settlement
What the lender gains
A secured position over imported goods from customs discharge to final release, with a stock certificate in the bank’s name.
Questions Lenders Ask
Does VSM pay the duty or freight?
No. The partner bank finances them and pays the Uganda Revenue Authority and the transporter direct. VSM secures the goods.
Which goods qualify?
Non-perishable imports with a shelf life beyond six months, such as building materials, equipment, packaging and industrial inputs.
How is the stock valued?
Two values are set at appraisal: the tax value from the Uganda Revenue Authority assessment and the market value VSM proposes. The bank reads one against the other before it lends.
How long does a facility run?
Usually 90 to 120 days, matched to the sales cycle of the imported stock.
How is the facility repaid?
Sales proceeds go into the flagged account as the bank releases stock in tranches. Cover is recalculated on the stock that remains.
Read all the questions lenders ask.
More Collateral Management Services
- Collateral Management
- Collateral Monitoring and Audit
- Commodity Exchange-Linked Financing
- Inspection Services
- Secured Distribution
Looking for advisory and logistics? See Advisory and Logistics
See also How It Works and For Banks.