In documentary transactions, the bank uses worldwide network of banking correspondents and computer and communication technique on the level of standard of banks of mature European countries. In order to make documentary payments the bank uses following payment and secured instruments:
Documentary collection
Form of payment instrument without obligation broadly used abroad and in domestic transactions. Delivering of documents to buyer is often made after collection conditions are met:
- documents against payment - collecting bank shall not deliver the documents to buyer (importer) unless he pays value of documentary collection,
- documents against acceptance - collecting bank delivers documents to buyer only against acceptance of bill of exchange attached to the documents.
Documentary collection as a payment instrument is, compared to letter of credit, less time-consuming and charges of the bank related to processing are lower because in the event of documentary collection the bank does not enter into an obligation on behalf of its client.
In the field of documentary collections, the bank offers
- processing of import and export documentary collections,
- securing of acceptance and collection of bill of exchange,
- securing of acceptance of documents,
- provision of consultancy and advisory services.
Letter of credit
- pertains among payment and securing instruments,
- is irrevocable written obligation of the bank to pay a certain financial amount to seller at a certain moment providing conditions of letter of credit specified in the advisory note of letter of credit are met.
Poštová banka provides for advisory services to its clients how to use letter of credit as good as possible, whether client is an exporter or an importer. Processing of letters of credit is made automatically on the high professional level, fast and to overall client's satisfaction.
Bank offers its services to clients in following types of letters of credit:
- advised / confirmed,
- revocable / irrevocable,
- according to a method of payment: acceptance credit, with deferred maturity, negotiation,
- special types: revolving, stand-by credit, transferable, back-to-back credit.
Bill of exchange
- is tradable security issued to order,
- for creditor - owner it represents obligation of a borrower enforceable on court,
- obligation against creditor does not arise immediately after issuing bill of exchange by creditor, but only after it is accepted by borrower.
In the event of export bills of exchange, bank ensures acceptance of bill of exchange, extension of validity and provision of collection of bill of exchange.
In the event of import bills of exchange, the bank ensures collection of import bills of exchange, acceptance of bill of exchange, aval of bill of exchange and putting bills of exchange in deposit.
Banker's guarantee
- originates by written declaration of the bank in Letter of Guarantee of satisfying creditor up to the amount of certain financial sum if borrower fails to meet his obligation or other conditions stated in the Letter of Guarantee are met,
- fulfils securing role in business relationship; stand-by credit (special type of letter of credit with securing role) is also classified as banker's guarantee.
Poštová banka issues all types of banker's guarantees according to demands of client.
The most widely used types of banker's guareantees:
- Payment Guarantee,
- Bid Bond,
- Advance payment guarantee,
- Performance bond,
- Warranty bond.
Trade financing
Poštová banka provides for advisory and services for clients in the field of short-term and medium-term trade financing:
- advisory in the phase of preparation of contract between business partners, advisory in selection of the most suitable payment instrument, etc.,
- financing in export letters of credit: repurchase of receivables from letters of credit with deferred maturity after acceptance of documents at side of issuing or confirming bank,
- assignment of revenue of an export letter of credit to a third entity,
- transfer of letter of credit to a second beneficiary,
- financing in payment instrument of documentary collection: discount of bill of exchange submitted under documentary collection,
- financing of export needs of clients insured e.g. by EXIM banka,
- financing of supplier by repurchase of his receivables against selected customers with recourse to supplier (with determination of loan limit to supplier),
- financing of receivables up to the amount of 40% of the nominal value,
- interest costs calculated only up to the amount of really provided funds,
- price of financing is determined on contractual basis: discount rate (reference rate of foreign currency on inter-bank market + risk extra charge) + administration charge of 0.25% min. 49,79 € from nominal value of receivable