Documentary operations

What we offer 

We provide exporters (sellers) and importers (buyers) with an opportunity to minimise risks related to payment for delivered goods and optimise settlement using documentary operations.

Settlement with documentary operations 

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    International payments
    A good way to pay for goods and services to a partner in another country.

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    Document-based settlement.
    Banks process and pay for documents only, without handling goods directly.

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    Paid by a bank.
    The importer’s bank makes the payment instead of the importer (i.e. buyer or recipient of cargo).

  • Bank fees are paid according to the trade partners’ agreement and may be covered by importer, exporter, or shared.

  • International regulations.
    A uniform standard is enforced by banks worldwide. The regulations of the International Chamber of Commerce (ICC) describe the exact procedure for each type of operation. All banks that provide these services are guided by the same regulations.

Types of documentary operations

Letter of credit

Letters of credit are used in trade operations when partners want to have payment guarantees, assurances that their contract will be honoured.

A letter of credit allows settlement for international trade operations where the importer’s bank guarantees payment to the exporter – provided that presented documents fully comply with the requirements specified in the letter of credit. 

Documentary collection

Documentary collection is used as a form of settlement for international trade partners that have been working well together for a long time.

It involves collection of a payment by the importer’s bank, which is performed within a specified time in order to pay for financial and/or goods delivery documents presented by the exporter’s bank. Documentary collection does not guarantee payment.

Bank guarantee

Guarantees are provided to the beneficiary as a collateral for the buyer’s obligation under the contract with the beneficiary (supplier).

The guaranteeing bank undertakes the obligation to pay upon receiving a claim from the beneficiary (guarantee holder) made in the event of the buyer’s breach of contract. A bank only satisfies claims made within the period specified in the guarantee and up to the specified amount of the guarantee.