OTP Bank is dealing with all types of documentary operations
Documentary Credits
Bank Guarantees
Documentary collection
- bid bonds (tender guarantees)
- performance guarantees
- advance payment guarantees
- payment guarantees
- stand-by letters of credit
- credit repayment guarantees
- documentary collection
The main advantages of letters of credit and bank guarantees are
- 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 rates for issuance of non cash-covered letter of credit or guarantee is 3-5% p.a. - Risks minimization:
no risk of non-delivery of goods: payment is made against previously agreed list of 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 beneficial 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 deferral 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 prove high reputation in many countries, reliability and creditworthiness of your company. - Accessibility:
OTP Bank will help its customers with consultations on all stages of the transactions using letters of credit and/or guarantees, from pre-contract negotiations till successful completion of trade transaction.
