Documentary Business

Guarantees

Security instruments mitigate risks in debtor-creditor relations. Guarantees are the most frequently used security instrument issued by the bank upon request by a customer (Principal). By issuing a guarantee the Bank undertakes to settle the possible outstanding overdue payables of its customer (Principal) to the third party (Guarantee Beneficiary) provided all terms and conditions set in the guarantee are met.

In addition to regular local and international business guarantees, Raiffeisen bank issues special guarantees tailored to fit your needs.

Major types of guarantee are:

performance guarantees
bid bonds
payment guarantees
guarantees for the quality of the works performed
guarantees for the return of advance payments
customs guarantees

Documentary collection

Documentary collection is a written order from the exporter to the bank to deliver the presented documents to the importer on the basis of which the importer can dispose with the goods. Based on the request of the exporter of the goods, the documents can be handed over to the importer, but only upon fulfilment of certain conditions from the collection.

In the case of export collection, Raiffeisen Bank's customer is the exporter, and Raiffeisen Bank is the bank that sends documents for collection to its correspondent collection bank, which is usually the importer's business bank.

In the case of import collection, Raiffeisen Bank's customer is the importer, and Raiffeisen Bank is the collection bank, i.e. the bank that, upon request and by order of its correspondent bank of the sender's bank, which is the exporter's business bank, delivers collection documents to the importer (Raiffeisen Bank's customer) after meeting the conditions for collection.

Do you operate on the local and foreign markets and want a quality business cooperation with your partners?

Contracting the instruments of documentary business enables you to plan your cash flow more efficiently and provides additional security in the collection and payment of completed works.

Lower your operating risk By using documentary business instruments, you raise the level of security of collection and payment execution and provide additional security of collection and payment execution and achieve better business cooperation with your partners.

Consulting and professional support Our experienced documentary business team will give you its professional opinion on the instruments and provide you with additional support in business risk mitigation.

International banking group As a member of the Raiffeisen BANK International group, we have a wide correspondent network of banks that we do business with.

Letters of credit

A letter of credit constitutes an undertaking of a bank (issuing bank) to do the following by order and instructions of the customer (applicant):

Authorisation of another bank to accept (negotiate) the document provided that the payment conditions are complied with,
Authorisation of another bank to conduct this payment,
Payment to a third party.

A documentary letter of credit is a security instrument that business partners under international transactions use to additionally secure their deals and reduce collection risks arising from transactions with new partners.Upon the customer’s (importer’s) request and instructions, the bank undertakes to effect payments to the exporter’s bank in line with the regular export documentation defined in the relevant letter of credit.

A documentary letter of credit is issued upon the importer’s request, and the importer’s bank opens it and undertakes to settle it once the importer presents its proper import documentation. The documentary letter of credit for the export business is issued in favour of the exporter through its business bank, which informs him/her about it.

Backed Bills

Bill guarantee – AVAL is a commitment by the Bank to pay the bill of exchange in favour of the bearer at the maturity date, in case the debtor does not fulfil their obligation.

A bank-backed bill of exchange is a liquid payment security instrument.

By using bank-backed bills, the customer/debtor can boost sales, i.e. turnover, and to draw on discounts, rebates...

Buyers who purchase goods with a backed bill of exchange are enabled to pay on a later date, thus directly bolstering their company’s liquidity.