Margin Facilities South Africa - Merchant West
Manage FX Exposure and Access Liquidity with Margin Facilities
Large currency transactions can create liquidity challenges and expose businesses to volatility. A margin facility provides a short-term credit line that enables corporates to settle FX deals efficiently, maintain cash flow, and manage risk with confidence.
At Merchant West Treasury Solutions, we structure flexible margin facilities for South African businesses, helping you access liquidity when needed and protect against currency swings.
Manage FX Exposure and Access Liquidity with Margin Facilities
Large currency transactions can create liquidity challenges and expose businesses to volatility. A margin facility provides a short-term credit line that enables corporates to settle FX deals efficiently, maintain cash flow, and manage risk with confidence.
At Merchant West Treasury Solutions, we structure flexible margin facilities for South African businesses, helping you access liquidity when needed and protect against currency swings.
Why Businesses Use Margin Facilities
Immediate Liquidity
Access short-term funding to settle FX deals without tying up working capital.
Manage FX Volatility
Protect your business from sudden Rand fluctuations and cash flow shocks.
Flexible Structures
Facilities tailored to business size, trade volumes, and exposure.
Transparent Pricing
Clear costs and terms – no hidden spreads or surprises.
How Our Margin Facilities Work
1.
Needs Assessment
We review your liquidity requirements and FX exposures.
2.
Facility Structure
Terms and credit lines are tailored to your business.
3.
Draw Down Funds
Access liquidity when needed to cover FX positions.
4.
Repayment
Manage repayments in line with your treasury and cash flow strategy.
Who Benefits from Margin Facilities?
- Importers & Exporters → Manage timing differences between payables and receivables.
- SMEs → Access treasury-level tools without needing large banking credit lines.
- Corporates → Smooth out liquidity gaps during large FX deals or volatile periods.
- Capital-Intensive Businesses → Construction, mining, and manufacturing firms requiring flexibility in cross-border payments.
Practical Applications of Margin Facilities
- Cover liquidity gaps during large import payments.
- Support hedging positions with adequate funding.
- Smooth cash flow during periods of Rand volatility.
- Provide flexibility when supplier invoices and receivables don’t align.
Frequently Asked Questions - Margin Facilities
It’s a short-term credit line designed to support businesses settling foreign exchange transactions while managing liquidity and FX risk.
They provide liquidity to settle supplier invoices or bridge cash flow gaps until receivables are collected.
No. Merchant West structures facilities for SMEs as well as large organisations, tailored to business size and exposure.
Terms are customised to your specific requirements, transaction volumes, and risk profile.
They complement FX hedging by ensuring you have the liquidity to maintain positions and manage volatility effectively.
Costs depend on the facility size and structure. Merchant West ensures full transparency on pricing and terms.
Merchant West provides a transparent fee structure. You’ll know the conversion spread and transfer costs upfront before confirming the transaction.
Secure, Compliant & Competitive Treasury Solutions
Gain Liquidity and Control FX Risk
With Merchant West Treasury Solutions, your business can access short-term liquidity, protect against Rand volatility, and plan international transactions with confidence.