Documentary operations
We offer our Clients settlements with foreign counterparties worldwide, including via electronic banking. The Bank facilitates foreign trade transactions, such as documentary (import and export) L/Cs, as well as documentary collections.
Documentary L/Cs (Letters of Credit)
In documentary L/Cs, the Bank, acting on the instructions of an importer, undertakes to pay an exporter a certain amount of money once the conditions stipulated in the Letter of Credit are met and the documents specified in the L/C are submitted within the prescribed time.
How do you benefit:
an L/C secures the seller against the risk of the buyer withdrawing from the transaction, the buyer's insolvency or refusal to pay,
an L/C facilitates access to financing for production purposes.
L/C discounting
The product makes it possible to pay the L/C amount to the beneficiary before the due date.
How do you benefit:
short-term borrowing for exporters on preferential terms,
better liquidity of the beneficiary thanks to early receipt of the L/C amount.
Documentary collections
In documentary collections in foreign trade, the bank executes client instructions to release trade documents against payment of an amount specified in the collection instructions. Collections may also apply to acceptance or payment of a draft which is not accompanied by trade documents, or to the release of documents on other terms, e.g., against a bank guarantee.
How do you benefit:
no need to immediately engage business cashflow,
time savings compared to L/Cs since collections do not require the procedures involved in agreeing the terms and conditions and then issuing the L/C.
