Foreign payment transactions

Documentary collection (INKASO)

Documentary collection is based on an order of the exporter/seller to its bank to present the importer/buyer (through its bank) the documents enabling the importer to dispose of the goods, subject to immediate payment or acceptance of a bill of exchange, or meeting other agreed conditions.
Advantages of the documentary collection compared to other security instruments lie in relatively low costs, simple procedure and risk equally divided among the business partners.

Documentary collection normally contains commercial documents (invoice, transportation documents and similar), with or without pertaining financial documents (bills of exchange). However, financial documents with no connected commercial documents can also be sent for collection (so-called clean collection).

Depending on your contractual status with the foreign partner, the collection can contain the following instructions:

• documents against payment (D/P),
• documents against acceptance (D/A).

Documentary letter of credit

Regardless whether your focus is on import or export, OTP banka offers support in your documentary operations, and especially with the letters of credit, as it has a wide network of A1 correspondent banks. 
If you are an importer, OTP banka can be your issuing bank and - if your commercial partner requests so - it can also obtain a confirmation for your L/C from an A1 foreign bank.

On the other hand, if you are an exporter, OTP banka can be your issuing and your confirming bank. If you are an importer, please note that we also offer a possibility of securing your collection in risky markets.

If you wish to take advantage of our L/C operations, please fill in the relevant application, attach the required documentation and charts of trade creditors and trade debtors, including credit institutions, and submit them to your nearest OTP branch dealing with corporate customers.

Guarantees

As you might require them in your business with domestic and foreign partners, OTP banka offers the following products:

Outgoing guarantees are issued in favour of your business partners in the country and abroad, and depending on the agreed transactions they can be:

• payment guarantee (for prompt payment of obligations for imported goods, repayment of an international loan, prompt payment to the supplier, super guarantee …)
• performance guarantee (for repayment of advances, for performance, for the warranty period, in lieu of retention, tender, lease deals, consignment, customs),
• counter-guarantee.

Incoming guarantees as security instruments for collection of receivables from your business partners. OTP banka stands at your disposal for the issuance of incoming guarantees, preceded by professional advice.

If you wish to liquidate your accounts receivable, submit the filled in application, the required documentation and charts of trade creditors and trade debtors to your nearest OTP branch dealing with corporate customers.

We will handle your application promptly and provide expert advice. Do not hesitate to contact us for more details.

Securing of your export to the markets running greater risk

The Regional Trade Facilitation Programme of EBRD is aimed to provide security against the collection risks connected to foreign trade (involving 26 countries).

OTP banka d.d. joined this programme as a confirming bank, which means that, subject to certain conditions, it can offer its clients (EXPORTERS) full security against the collection risk in the countries where EBRD is operating (B&H, FYROM, Albania, former Soviet Union countries, most of the Eastern European countries...). Those are the very markets where our exporters can be quite competitive, but the collection is not certain due to economic and political reasons.

In August 2000 EBRD expanded the programme to include activities that are not purely commercial, that is, EBRD can provide security for tender and performance guarantees, as well as for other types of guarantees covering manufacturing, assembling, financing of capital, general construction works, shipbuilding and similar.

How can you use the programme?

With the related agreement EBRD undertook to reimburse OTP banka d.d. by way of a stand-by L/C in case it cannot collect under an international payment instrument (L/C, payment guarantee, avalised BE/promissory note) issued by some foreign banks.

Upon receipt of a payment instrument, OTP banka d.d. applies to EBRD for the issuance of additional guarantee. Once the issuing bank gives its consent, EBRD makes an offer for the issuance of the guarantee depending on the transaction (issuing bank, country, amount, type of goods, deadlines...). If the payee (exporter) agrees with the rate of such guarantee issuance, EBRD will issue the guarantee for collection in that export transaction.

If you already export, or plan to export, in a country included in this programme, and would like to secure your collection, please contact us for more details about our offer.