CJSC "BTA Bank" successfully provides services for financing export-import operations and has access to banks around the world. The authority of partner banks allows you to offer you the solution of problems of any complexity.
The essence of trade financing is the use of international trade instruments, such as letters of credit and guarantees.
Documentary letter of credit
Documentary letter of credit is an obligation the Bank undertakes on behalf of a client to pay beneficiary (goods seller) the sum stated in the letter of credit against submission of documents stated in the text of the letter of credit and complying its conditions during the period of time stated in the letter of credit.
In other words You make an Agreement with "BTA Bank" CJSC about our liability to pay for the shipped goods the sum, for which the letter of credit is concluded, as soon as your Partner (goods seller) submits all necessary documents: transport documents, custom documents, the documents confirming the shipping, the documents confirming quality and other characteristics of the goods. Transport conditions, goods security are discussed in the conditions of the letter of credit thus the following foreign trade risks are excluded:
- Risk of goods non-delivery
- Risk of delivery of low quality goods
- Insurance risks
Two types of letters of credit are used in the world practice:
First type is a letter of credit opened on the documents submission; You (an importer) shall pay for the shipped goods during a week. Second type - with the payment delay. In case of use of letter of credit with payment delay, a buyer can get payment delay it means there is no necessity to withdraw money. It allows a buyer to save funds because a buyer can start selling the goods bought in credit way for trade or if it is equipment or components, start working and pay a part of the letter of credit with the money earned here. Thus letter of credit with delay is a kind of credit. the sum of the letter of credit will return after a certain term defined in the result of an agreement between a buyer and a provider. Evident advantage of the service is concessionary interest rate - from 4%-10% per annum.
It is also possible to get confirmation of the letter of credit from another high-class foreign bank. In this case the bank undertakes the same liability as "BTA Bank" CJSC. It reduces the risks of your partner.
We are also ready to provide any advice to our partners on this type of settlement.
Thank to joining "BTA" group most of documentary operations are implemented directly with banks of our clients' contractors (without intermediary banks), that allows clients to minimize their banking commission expenses.
"BTA Bank" CJSC opens documentary letters of credit both in KGS and in foreign currency for its clients.
Any company negotiating on a conclusion of a contract, undoubtedly, would like to assure that another participating part will carry out its obligations. Bank guaranty is a popular and often used way of ensuring performance of obligation. Except it, in some cases Bank Guaranty is a condition of a client's participation in separate deals or operations (for example tender guaranty). In contrast to the letter of credit, the Guaranty is not a paying instrument; payment on the Guaranty is made in exceptional instance. Use of the Guaranty allows You not to make prepayment but to pay upon receipt of goods or with delay. It is also possible to get Guaranty from a high-class foreign bank under the instruction of our Bank.
Our Bank provides various types of guaranties, used in international practice:
- Tender guaranties;
- Contract performance guaranties;
- Return of advanced payment guaranties and etc.
"BTA Bank" CJSC offers the most profitable guaranty rates only 3-8% per annum charged upon property, and from 0,5% to 1,5% form the sum charged upon money. The guaranties charged upon money is given for one working day.