Trade finance operations

Trade finance and documentary operations are payment methods widely used methods in international trade. This is a reliable and convenient way to significantly minimize risks faced by participants of commercial transactions. At least four parties are involved in documentary business: buyer, buyer’s bank, seller, seller’s bank. Documentary business operations provide balance of interests between seller and buyer in trade transactions.

Bank handles its clients export and import transactions, and offers the following instruments in order to help its clients to realise trade operations:

  • Bank guarantee – an irrevocable commitment of the bank under which it undertakes to pay to the beneficiary a sum of money upon his written demand made in accordance with the guarantee terms.
  • Letter of credit – an irrevocable undertaking of the bank to make a payment to the person specified in the letter of credit against the presentation of a certain set of documents, complying with the terms and conditions of the letter of credit.
  • Documentary collection – a service under which the bank processes financial and/or commercial documents in accordance with the instructions given by the collection ordering party with the purpose of receiving a payment or accepting the documents by the payer.

For detailed information please contact our Client Service.