Documentary and guarantee operations
Safe support of your payments
Documentary operations
A letter of credit represents the safest payment instrument offering maximum protection to both the importer/buyer and the exporter/seller.
At your request and for your account, according to the received instructions, we open a letter of credit based on the deposited coverage or postponed cash cover (no later than 5 days before the due payment to the exporter/seller).
Our obligation is to open:- Letters of credit payable at our bank’s counters or counters of other nominated banks
- Letter of credit payable at sight, with deferred payment period, with a banker’s acceptance or negotiation
- Non-transferrable, transferrable, revolving, stand-by letters of credit
- Unconfirmed letters of credit and letters of credit requiring confirmation from another bank
By opening letters of credit, we perform three basic functions:- Payment (conditional payment, since per order and for the account of the importer/buyer we perform the payment of the L/C documents presented in good order)
- Insurance (we guarantee to the importer/seller they will receive funds in the value of L/C documents once they deliver the goods or perform a service)
- Lending (we lend mooney to the importer/buyer until the agreed payment date)
The wide network of our correspondent banks, as well as professionalism and long-standing experience of our employees allow us to offer the following services:
- Checking the correctness of loro letter of credit’s content sent through the bank
- Consulting services concerning the preparation of the text of loro letters of credit
- Advising (remittance advice) loro letters of credit (based on the instructions received from the issuing (foreign) bank)
- Transfer of letters of credit (according to the instructions of the letter of credit beneficiary)
- Confirmation of letters of credit (according to the instructions of the issuing bank)
- Consultation services concerning the fulfillment of L/C conditions and document preparation
We also perform activities related to the collection of the entrusted documents for payment, mediation with regards to payment, as well as sending documents for collection. The documents in question are usually commercial, but also financial documents. To this purpose, we provide advisory services concerning the handling of international bills of exchange, their completion, acceptance and similar.
The advantages of documentary collection are the following:
- Simpler and less expensive handling
- Faster payments than through a bank transfer
- Securities and documents of ownership over goods are delivered to the buyer against acceptance of bills or payment (CAD, D/A, D/P)
- The possibility of financing – discounting of accepted bills
Guarantee operations
A guarantee is a payment or performance security through which the bank guarantees that the guarantee ordering party shall meet all obligations towards the guarantee beneficiary within the agreed deadline.
We issue and advise all types of bank guarantees:
1. Payment guarantees
- Guarantees of payment
- Guarantees for securing loan obligations
2. Performance guarantees
- Advance refund guarantees
- Performance guarantees
- Bid guarantees
Guarantee elements and standard models of the guarantee form are taken from the publication URDG, ICC 458, but are adjusted to specific demands and needs of the participants in the main commercial operation in accordance with our business policy.
We offer the following services with regards to loro guarantee operations:
- Advising loro letters of credit according to the instructions of the issuing bank
- Checking the correctness of the loro guarantees’ content sent through the bank by SWIFT message or directly to guarantee beneficiary
- Consulting services concerning the preparation of collection request and forwarding the collection request (request for payment) under loro guarantees
