Trade Financing
An experienced, modern and professional bank providing high-quality financial services and a flexible approach.
An experienced, modern and professional bank providing high-quality financial services and a flexible approach.
We have accumulated significant experience in trade financing, therefore we are able to offer our customers fast and professional service. If you are engaged in exportation or importation of goods and regularly purchase goods from foreign partners or sell your goods to them, choose a documentary operations service, with the help of which we can reduce your transaction risks.
Documentary operations are a set of banking services widely used in international trade to protect counterparties from potential risks such as supply, payment, currency fluctuation, legal, and other risks associated with business.
A letter of credit is the irrevocable obligation of the issuing bank to pay a certain amount of funds to the recipient of the letter of credit in accordance with the terms and conditions thereof, receiving in exchange the documents compliant with the terms and conditions of the letter of credit.
Import letter of credit – a letter of credit issued by the bank based on an application filled in by a customer. The bank services the buyer.
Export letter of credit – a letter of credit received and notified by the bank to the recipient of the letter of credit. The bank services the seller.
* Security – the importer of goods needs to reserve funds for payment in a timely manner. Funds at the bank or any other security acceptable for the bank can be used as a security.
Letter-of-credit transactions are performed in accordance with the Uniform Customs and Practice for Documentary Credits of the International Chamber of Commerce (ICC) (2007 edition, ICC publication No. 600).
In implementing documentary collection, the buyer’s and seller’s banks act as intermediaries, with the help of which the seller hands over to the buyer the documents related to the sending of goods and required for the receipt thereof. The bank hands over the received documents to the buyer in exchange for immediate payment or a confirmation of deferred payment obligations.
Please note that this form of payments does not include the obligations of involved banks and the bank cannot affect the buyer’s choice to make or not to make payment. Documentary collection fulfils the functions of means of payment.
Documentary collection transactions are performed in accordance with the Uniform Rules for Collections of the International Chamber of Commerce (ICC) (1995 edition, ICC publication No. 522).
A guarantee is the irrevocable obligation of the issuing bank to make an immediate payment to the beneficiary, if the beneficiary has submitted a relevant claim in accordance with the guarantee terms and conditions.
A bank guarantee is widely used in both domestic business and international trade.
A bank guarantee fulfils the functions of security means, which serves as a remuneration instrument for inconveniences that occur in the event the applicant’s duties are not fulfilled.
To ensure the issuance of a multi-use bank guarantee, a bank guarantee line can be requested.
* Security – an applicant, the Bank’s customer, requires to reserve timely the funds for the fulfilment of possible obligations. Funds at the Bank or any other security acceptable for the Bank can be used as a security.
Guarantee transactions are performed in accordance with the Uniform Rules for Demand Guarantees of the International Chamber of Commerce (ICC) (2010 edition, ICC publication No. 758).
Today, only a rare company is able to develop and grow successfully without using loans in financing its operations. We are ready to offer individual financial solutions according to customer’s needs. Our customer should know only the purpose of the loan, and we will recommend the most suitable type of loan, type of interest rate, and the best payment schedule.
If you are engaged in exportation or importation of goods and regularly purchase goods from foreign partners or sell your goods to them, we offer to choose a documentary operations service, with the help of which you will be able to minimise your transaction risks.
We offer the following documentary operation services:
To build our customers’ wealth and ensure their safe future, we offer them investing their free funds, using our deposit service.
We will kindly answer to all Your questions during bank working hours. Call +371 67 359 000
We will not only help You find answers to your questions, but we will also offer individual solutions. Write please to [email protected]