OTP Bank is dealing with all types of documentary operations:
- export letters of credit;
- import letters of credit.
- bid bonds (tender guarantees);
- performance guarantees;
- advance payment guarantees;
- payment guarantees;
- stand-by letters of credit;
- credit repayment guarantees.
The main advantages of letters of credit and bank guarantees are:
- letters of credit and bank guarantees may be utilized by you as an alternative to credit funds attraction.
- 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.
- 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.
- 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.
- 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.
|More detailed information can be obtained by calling the Information Center|