Documentary operations
Documentary letters of credit:
Documentary letter of credit is a written engagement of the Bank to pay to the seller on behalf of the buyer the amount of the letter of credit on condition that the buyer follows the terms and conditions set in the letter of credit.
Documentary letters of credit provide a high level of protection and safety both to the buyer and the seller in conducting of international trade deals. The buyer is sure that the payment would be made by a party, independent from the customer, as far as the terms and conditions of the letter of credit are followed. The Buyer is sure that the payment towards the seller would be done only after the bank received the specified documents, which absolutely comply with the ones required by the letter of credit.
Depending on the rights and obligations of the participating parties in documentary letters of credit as well as on the payment conditions the Bank could develop for its customers the following types of letters of credit:
- revocable and irrevocable;
- confirmed and unconfirmed;
- covered and non-covered;
- divisible and indivisible;
- transferable and non-transferable;
- single and revolving;
- secondary, compensatory etc.;
- sight letters of credit and term letters of credit
PEB “TEXIM” AD works with letters of credit in local and foreign currency providing excellent service, expert assistance, speed and correctness.
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Cash against documents
Cash against documents is a service in which the Bank processes commercial and financial documents in compliance with orders with the purpose for receiving a payment or handing over of documents on other conditions. The Bank does not undertake any engagement in regard to payment of the obligation and does not have the obligation to carry out control over the documents.
The advantages of cash against documents are the simplified procedure, speed, the lower bank charges compared to letter of credit and the possibility for handing over the documents to the buyer against reciprocal payment of the due amount.
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Bank guarantees
Bank guarantees constitute an irrevocable engagement for payment undertaken by the Bank in front of our customers. The guarantees could be in different forms: performance guarantees, guarantees for tender participation, for payment or for advance payment. The guarantee could be also issued in the form of Stand-by letter of credit. Main advantage for the customers is that the bank issues bank guarantees at certain terms without requesting blocking of amounts on behalf of the ordering person. The image of PEB “Texim” AD in the respect of those operation is first class.