Trade finance

A letter of credit gives additional security to businesses in international trade transactions. It is an undertaking of the buyer’s bank to pay a certain amount to the seller upon presentation of shipping documents described in the letter of credit.

• No need for the buyer to make prepayment, and they may receive longer payment deadlines.
• The seller receives payment regardless of the buyer’s ability to pay.
• The terms of the letter of credit can be amended or cancelled only with the consent of the seller, so the order cannot be cancelled or changed without the seller’s agreement.
• The seller can receive financing from the bank without additional collateral.

A bank service for international trade payments in transactions with regular business partners. The benefit to the seller: the buyer receives the shipping documents, what are needed to collect the goods, only after the payment is made. The benefit to the buyer: certainty that the goods they have paid for, are on their way.

• Greater security for international trade transactions.
• Lower international trade transaction costs.
• Buyers can make international transactions with a shorter prepayment period, or even without advance payment.

By using the factoring service, the seller receives the money for the invoices they have issued right away.

• Financing up to 90% of the invoice amount.
• Customers can provide longer invoice payment terms of up to 120 days.
• Service available for total invoice amounts starting from 100 000 EUR.
• Low commission fee for factoring: from 0.2% of the invoice sum + VAT.

Necessary documents