Foreign Trade Financing – Documentary Operations

Eliminate your risks in foreign trade operations by using our knowledge, expertise, experience, efficiency and information. Leave the financing of your foreign trade transaction to the Bank by choosing a letter of credit or guarantee

Based on years of experience in financing foreign trade operations, Erste Bank a.d. Novi Sad is able to provide you with all necessary information, advice and services.

Letter of Credit

Should you need a payment instrument that equally protects the interests of:

  • the buyer – that the purchased goods will be paid for only when they have been shipped and
  • the seller – that the goods will certainly be paid for within the agreed period

then the letter of credit is the right solution for you. The Bank makes a payment against the L/C documents specified by the buyer as the proof that the goods have been shipped, and the seller is certain that it acquires an irrevocable right to payment of goods by delivering those documents.

Documents required for opening an import (nostro) letter of credit:

  • Order for opening the letter of credit
  • Basis for opening the letter of credit (agreement concluded with the foreign partner, pro-forma invoice, order confirmation...)
  • For the financing method, please contact your Account Manager

Letters of guarantee

Should you need an instrument by which you wish to secure payment, goods delivery, participation in a tender or any contractual obligation, the bank guarantor assumes an irrevocable obligation of paying the guarantee amount to the guarantee beneficiary if the guarantee beneficiary meets the terms specified in it.

Documents required for issuing a letter of guarantee in foreign operations:

  • Order for issuing a guarantee
  • Basis for issuing a guarantee (agreement concluded with the foreign partner, pro-forma invoice, order confirmation...)
  • For the financing method, please contact your Account Manager

Collection operations

Do you wish the commercial documents (bill of lading, airway bill, invoice, insurance policy, certificates…) for the goods that you exported to be handed over to your partner only after the partner has made the payment? Hand the documents over to the Bank and it will collect against the documents for you through its correspondent banks abroad.

Bill guarantee in foreign operations

In practice, a bill guarantee by the bank substitutes for a letter of guarantee. Subject to prior agreement with us, make an agreement with your foreign partner to draw a bill of exchange on you for the goods you imported with deferred payment. When you accept that bill of exchange, we shall guarantee the bill of exchange – issue a bill guarantee. After that, your partner may discount (sell) that bill of exchange before maturity with its bank or wait for it to be paid with certainty at maturity.

For any necessary information, please contact your Account Manager by phone at the following numbers: