Letter of creditReduce the transaction risk for the importer and the exporter and build secure business relationships, particularly with new partners. |
This is an undertaking from the buyer’s bank to pay a certain amount of money to the seller if the seller meets all the requirements specified in the letter of credit. Advantages
For the buyer:
For the seller:
Available services
For the buyer (importer):
For the seller (exporter):
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Documents required to issue an import letter of credit
- Financial statements for the last two years and operational results (including the breakdown of debtors and creditors’ accounts) - Information on the collateral - Other documents as requested by the bank |
Steps to work with an import letter of credit1
Agree on the letter of credit with your partnerSign the agreement providing for payment by the letter of credit 2
Submit the applicationFill in the Documentary credit application and submit it together with the required documents to the bank 3
Enter into the agreement and arrange the collateralEnter into the agreement on the collateral (cash cover, credit line or collateral against movable/immovable property, etc.) with the bank 4
The letter of credit will be sent to the seller’s bankPNB Banka will send the letter of credit to the seller’s bank through the SWIFT system. After the seller dispatches the goods and submits the documents to its bank, the seller’s bank will send the documents to PNB Banka 5
Making the paymentIf the documents on delivery of the goods are compliant with the letter of credit, PNB Banka makes the payment and issues the documents to the buyer |
Steps to work with an export letter of credit1
Agree on the letter of credit with your partnerSign the agreement providing for payment by the letter of credit 2
Receiving the letter of creditThe bank receives the letter of credit from the seller’s bank through the SWIFT system and advises on it to the seller 3
Dispatching the goodsAfter the goods have been dispatched, the seller submits the documents to PNB Banka, which then sends the documents for payment 4
Making the paymentPNB Banka receives the payment and transfers it to the seller |
PricelistImport letters of credit
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