Take advantage of various documentary credit and guarantee operations, which can significantly reduce payment risks between the parties in relation to shipped goods or services in international trade.
A Letter of Credit is a written undertaking by an issuing bank on behalf of an applicant (importer of goods or services), promising to effect payment in favour of the beneficiary (exporter or seller of goods or services) up to a stated sum of money, within a prescribed time limit and against presentation of stipulated documents in conformity with the terms of the Letter of Credit.
When carrying out operations with documentary Letters of Credit the Bank abides by the terms of "Uniform Customs and Practice for Documentary Credits", as amended in 2007, the publication # 600, issued by the International Chamber of Commerce (UCP 600).
What we offer:
- Issuing documentary Letters of Credit on behalf of the clients of RCB
- Advising clients of documentary Letters of Credit issued in their favour by other banks or amendments to those Letters of Credit
- Allows the buyer to avoid or reduce pre-payment
- Offers certainty that the payment will be made only upon the presentation of the documents requested
- Provides security to the buyer that all shipment conditions will be met as the seller must fulfil all terms of the contract, as indicated in the Letters of Credit (shipment of the goods, delivery terms and deadlines) in order to receive the payment
- Reduces the risk of non-payment for goods dispatched. If the seller provides the required package of documents confirming the dispatch, the bank that issued the Letters of Credit is obliged to pay the amount stipulated in the Letters of Credit
- Guarantees that the goods will be paid by the buyer even before the goods are manufactured
- Provides the seller with significant advantages in resolving buyers’ complaints/claims over the quality of goods supplied, since such grievances are considered separately from the Letters of Credit and cannot affect the payment
- Makes it possible to expand the sales market by reducing the risk of non-payment from counterparties with whom the seller does not have a working business relationship
A Bank Guarantees is a one-way contract between the Bank acting as guarantor and a beneficiary. Under this contract, the Bank undertakes to make payment to the beneficiary within the limits of a stated sum of money, if the beneficiary’s counterparty (i.e. the applicant for the Guarantee) fails to fulfil its contractual obligations to the beneficiary in accordance with the terms of the underlying agreement between them.
When carrying out guarantee operations, the Bank abides by the terms of "The Uniform Rules for Demand Guarantees", as amended in 2010, issued by the International Chamber of Commerce and is referred to as URDG 758.
What we offer:
- Issuing of the following Bank Guarantees and counter-guarantees upon the request of RCB Bank clients:
- Payment guarantees
- Performance guarantees
- Tender guarantees
- Advance Payment guarantees
- Advising of guarantees issued by other banks in favour of clients of RCB Bank Ltd
- Provides the buyer an opportunity to count on more lucrative contractual terms from the seller, given that the risks of a commercial transaction for the seller are reduced when the buyer provides a guarantee
- Acts as additional confirmation of the buyer’s financial sustainability
- Offers an alternative to an advance payment or serves as a guarantee that a prepayment will be returned
- Limits the potential risk that the buyer may fail to make payments under the contract
- Makes it possible to expand the sales market by reducing the risk of non-payment by counterparties with whom the seller does not have sufficient cooperation experience