Documentary operations

When handling letter of credit operations, all contractual parties deal only with documents, not goods, services and/or other forms of fulfilling liabilities supported by the documents.

Types of letters of credit:

• import letters of credit
• export letters of credit
• transferable letters of credit
• other schemes of documentary operations.

Your benefits:

• the letter of credit is accepted as a settlement and financing tool when handling operations with virtually all companies of the world (the unified rules for letters of credit translate into their high level of legal protection)
• the letter of credit enables you to work with any unfamiliar foreign partner
• the letter of credit reduces the risk of non-payment
• the letter of credit is a bank's liability which makes the exporter more likely to receive the payment, rather than payment made upon delivery
• the importer can get support and advice of the letter of credit issuing bank when defining the set of documents to be furnished in accordance with the letter of credit terms. The exporter shall not receive the payment until furnishing the documents specified in the letter of credit
• the importer can get a longer credit period if having a letter of credit than if paying the exporter directly
• he importer can insist on the goods being shipped within a fixed period by indicating the time frame for goods delivery under the letter of credit .

Bank guarantee is a promise made by the bank to provide payment of the previously fixed amount to the Beneficiary in case the contractual party of the Beneficiary does not meet his liabilities (or in case of any other event that should have happened or need not have happened) – that is a guaranteed case. This guarantee secures the fulfillment of financial and other obligations under the contract.

We issue guarantees of the following types:

• tender guarantees
• payment and advance payment guarantees
• guarantees of agreement (contract) fulfillment
• tourism guarantess
• non-standard types of guarantees.

Benefits for Client:

• the guarantee can be a cheaper alternative to attracting credit funds with a view to making a pre-payment pursuant to the contract
• the guarantee may service foreign trade deals struck for the amount exceeding the guarantee amount by several times if the goods consignment shall be shipped in parts (in this case the guarantee is issued for the amount equalling to the value of one shipment despatch and is effective within the entire validity period of the contract)
• the use of bank guarantees of different schemes allow parties to reduce risks associated with the contractual party to the minimum and to minimise costs of financing import deliveries.

Our advantages in documentary operations:

• rapid execution of orders against documentary settlements
• consultancy on issues of optimising documentary settlements, complex support of contracts
• consultancy on drafting foreign trade contracts fully complying with the currency regulations of Ukraine and international rules UCP600
• simple (without covert commissions) and profitable tariffs
• great experience in documentary operations which the Bank has been handling nearly since the first months of its existence.