Documentary Operations

OTP Bank is dealing with all kinds of Documentary operations:

Documentary Credits:

• Export Letters of Credit;
• Import Letters of Credit.

Bank Guarantees:

• Bid Bonds (Tender guarantees);
• Performance guarantees;
• Advance payment Guarantees;
• Payment guarantees;
• Stand-by Letters of Credit;
• Credit repayment guarantees.

Documentary Collection:

• The main advantage of Letters of Credit and Bank Guarantees is:
  Universality;
• Letters of Credit and Bank guarantees may be utilized by you as an alternative to credit funds attraction.

Low cost:

• Issuance of Letters of Credit and Guarantees is much cheaper than attraction of credit funds;
• OTP Bank’s interest for issuance of non cash-covered Letter of Credit or Guarantee doesn't exceed 4-6% p.a.

Risks minimization:

• No risk of non-delivery of goods: payment is made against previously agreed documents confirming delivery or even after receipt of goods;
• Goods quality required by you will be confirmed by respective documents indicated by you in the Letter of Credit.

Mutual benefit:

• Letters of Credit and Bank guarantees are the instruments advantageous not only for you but for your counterparty as well;
• Utilization of Documentary Credits and Bank guarantees helps to achieve compromise between supplier's and buyer's positions;
• Increase of working capital;
• You have a possibility to increase volume of your operations without attracting additional credit funds just at the account of deferment of payment allowed by your supplier.

Evidence of reliability of your company:

• Letters of Credit and Bank guarantees issued or confirmed by well-known banking institutions in many countries prove high reputation, reliability and creditworthiness of your company.

Accessibility:

• OTP Bank will help its customers with consultations at all stages of the transactions with utilization of Letters of Credit and/or Guarantees, beginning with pre-contract negotiations till successful completion of the trade operation.