Documentary operations
ProCredit Bank offers issuance of documentary products and guarantees under extremely favourable conditions to its clients who deal with import and export trade, as well as sale of goods and rendering of services in the country.
Documentary business and guarantees instruments are documentary collection, documentary credit and guarantees.
Documentary collection is an arrangement under documentary collection concluded by parties to international trade, whereby the exporter submits to the importer commercial documents (such as invoice, transport document, etc.) and/or financial documents (e.g. bill of exchange) through its bank (the remitting bank). The remitting bank sends the respective documents to the collecting bank which further delivers these documents to the importer for collection. Collection is executed either at sight or within the agreed period of time after sight.
Documentary collection is a simple and efficient instrument as documents constitute indisputable proof that the exporter has met the undertaken contractual obligations (dispatch of goods). On the other hand, the exporter is aware of the fact that the goods will be in its possession until payment has been effected or the bill of exchange accepted.
A letter of credit is an irrevocable liability on the part of the bank to effect payment to the letter of credit beneficiary (seller-exporter) provided the presented documents are in accordance with the conditions stipulated in the letter of credit.
Documentary credit is the safest payment instrument used in international trade transactions that equally protects the interests of both the seller (exporter) and the buyer (importer).
It provides assurance to the selling party that they will receive payment after having submitted the necessary documents (in compliance with the letter of credit terms).
Depending on whether letters of credit assure prompt or deferred payment, we distinguish:
1. Letters of credit at sight
2. Letters of credit with deferred payment
Guarantees
A guarantee is a security instrument whereby the bank assumes independent and irrevocable liability to pay the amount of the guarantee to the beneficiary of the guarantee if the debtor under the underlying contract fails to meet the contractual obligations or duly fulfil any of the obligations under the contract.ProCredit Bank’s offer includes issuance of all types of guarantees in the country and abroad through its network of corresponding banks, some of the guarantees being:
- Payment guarantees
- Advance payment guarantees
- Warranty guarantees
- Performance guarantees
- Customs guarantees
- Loan guarantees
- Tender guarantees
Guarantees and letters of credit can be covered (fully or partially) and financed with a ProCredit Bank loan. The quarterly fee for issuance of guarantees and letters of credit ranges from 0.20% to 1.25% (minimum 4,500 RSD), subject to the type of cover and credit committee decision.
In addition to the above-mentioned instruments, ProCredit Bank offers:
- Issuance of stand-by letters of credit
- Issuance of letters of intent
- Avail of bills of exchange
- Registration of foreign loans
Employees in the Documentary Business and Guarantees Department are willing to give you professional advice with regards to structure of the business, as well as help you prepare a draft of documentary credits and guarantees.
Secure your job, protect your interests, and recommend a particular documentary business instrument or a guarantee to your business partner. ProCredit Bank will facilitate understanding, smooth negotiation, and efficient use of the respective payment/security instruments.
For further information, please visit the nearest branch of ProCredit Bank.
113.2928
94.2928