Financing

Trade finance

Specialised financing instruments and guarantees to support your international trade activities. As a sound bank with cooperative background, we are a strong partner at your side.

Your benefits at a glance

  • Comprehensive advice from a single source for an appropriate solution
  • Increased credibility on your part, thereby boosting the confidence of your business partners
  • Precise and prompt processing with dedicated points of contact

Guarantees and sureties

Under a bank guarantee or surety, we assume liability for you vis-à-vis third parties for the correct performance of a service to be provided by you. This is a so-called credit commitment, as we do not pay out any money, but commit ourselves indirectly for you. It enables you to confirm your creditworthiness in the eyes of your business partners and guarantees your ability to perform.

Letter of credit

With the documentary letter of credit (L/C) we offer you an instrument to secure payments in order to reduce the risks involved in processing your foreign transactions. We assume the payment obligation towards the seller and thus offer you the certainty that the payment will only be executed against delivery of the agreed documents. We support you with individual, competent and speedy support.

 

Example of the use of a letter of credit for export:

The customer is active in the production of machines and exports them to China, among other countries. The payment of the delivery is secured by a letter of credit. The seller therefore has the certainty that he will receive payment from the importer's bank after delivery of the goods and upon presentation of the relevant documents (all of which are regulated in the letter of credit). If only a part of the value of the goods is to be secured by means of this letter of credit or a down payment has to be made before the goods are manufactured, the delivery of the goods can be additionally secured by means of a bank guarantee (down payment guarantee). The same possibility exists if the functionality and a warranty period are to be covered (warranty).

 

Example of the use of a documentary collection in the import:

The customer sells various finished products to third parties. He purchases these products from various companies in different countries and usually orders smaller quantities. The buyer (our client) and the various sellers agreed to secure the settlement of these transactions by means of documentary collection. The parties agree on the documents to be presented under documentary collection. Our customer only receives the documents presented under the collection if he authorises us to pay for the goods. He will be able to take delivery of the goods with the documents. At the same time, we will trigger payment of the goods to the seller.