Trade Finance
UniCredit Bulbank has established itself as a reliable partner to its customers in their international trade due to its large experience and excellent reputation abroad and vast network of correspondents worldwide. Bulbank’s team of highly qualified experts offers consultancy services to the companies at every stage of their international trade deals – starting from the contract signing until the final payment is effected.
Letters of credit
The documentary L/C is one of the most commonly used methods of payment in international trade (lately used in domestic trade too) due to the high level of security it provides to all participants in the deal, as well as due to the existing international regulations. Documentary L/c provides the following advantages:
- reduces the risk from unilateral cancellation of the contract within the L/C’s validity
- secures the exporter against the risk of incorrectness or insolvency of the counterparty and guarantees that payment will be effected against presentation of conforming documents under the L/C
- enables the commissionaires/agents to accomplish the trade contract out by transferring the L/C or assigning the proceeds in the favor of the manufacturer
- secures the importer that payment under the L/C will be effected only under the term and conditions specified by the L/C
Confirmation of letter of credit
By adding its confirmation to a documentary letter of credit, the Bank assumes an undertaking towards the customer in addition to that of the issuing bank to effect payment there under. UniCredit Bulbank may add confirmation to L/Cs issued by first-rate correspondents of it’s under certain conditions.
Purchase of letter of credit
UniCredit Bulbank offers purchase of the seller’s receivables in case of deferred payment L/C upon its own discretion and under certain conditions.
Bank guarantees
Upon customers’ request UniCredit Bulbank issues the following bank guarantees:
- payment guarantees
- bid bonds
- performance bonds
- advance payment guarantees
- for warranty servicing
- for customs purposes
- and other tailored to the customers’ needs
Documentary or clean collections
Documentary or clean collections are usually chosen as a method of payment in international trade when mutual trust and reliability exist between the counterparties. They bear the following advantages:
- lower fees and commissions compared to those collected under documentary L/Cs
- higher level of security for the importer than the one assumed in advance payments
- basis for short-term trade financing for the importer via acceptance of a draft drawn against the latter with deferred maturity, in case and agreement in this respect has been reached between the counterparties
UniCredit Bulbank can offer customized solutions for specific deals, based on the above-mentioned instruments.
