* Current account exchange ratesFind out more
|Natural person||1 month*||3 months|
|EURIBOR 12 LUNI||04.12.2023||3.90200%|
|EURIBOR 6 LUNI||04.12.2023||4.00400%|
|ROBOR 3 LUNI||04.12.2023||6.25000%|
|ROBOR 6 LUNI||04.12.2023||6.31000%|
Trade finance services
Tools for exporters
The use of the Incasso Documentary gives the exporter more strict control over the goods and increased payment security. Documents relating to the exported goods are sent to the importer's bank via the exporter's bank. The importer pays the goods sight or maturity, and uses the documents to take possession of the goods.
Operation of the Export Incident
- Facilitates payment: Through the means of the Incasso documentary, the exporter asks his bank to collect the value of the goods exported against the issue of the related documents. The exporter's bank shall hand over the documents of the importer's bank for sight or fixed-term payment. Bills are the most used tools at Incasso, representing in fact the payment request.
- Banks act as agents: Using the Incasso facility means that both banks act as agents of the exporter, and their noncompliance with the instructions received from the exporter is their responsibility.
Advantages of using the Export Incident
- Safety: The exporter is confident that the importer will not be in possession of the original documents until after the payment has been made or as a result of the firm commitment. The exporter may request that the payment be guaranteed by the bank of the importer, this guarantee requiring the approval of the bank's crediting committee and the payment of additional fees.
- Control: For the exporter, the documentary incasso allows for greater control over the transaction. The exporter decides on the conditions under which the importer will be in possession of the documents. For example, the exporter may require documents to be handed over to the importer only against payment or acceptance of bills of lading.
- Protection: The use of bills of exchange or promissory notes provides documentary evidence of the payment request and of the importer's commitment to pay on a given date. Failure to pay bills or promissory notes may result in legal action against the importer.
- Uniformity: Most banks in the world process Incassos in accordance with the uniform international rules and guidelines established by the Paris International Chamber of Commerce.
- Eligibility: Usable for all exporters.
Export credential letter
Credential letter (also known as documentary credits) are one of the most widely used payment methods in international commerce and can be used for any range of goods and services. Letters of credit provide the seller with the guarantee of cashing the value of the exported goods and the buyer with the certainty that the payment will be made only under the conditions stipulated in the letter of credit.
Executing the export credential letter
- Conditional Payment Guarantee: A Credential Letter is a conditional payment commitment given to the exporter by the Importer's bank. Normally, the exporter receives the collateral from the bank before delivering the goods. The guarantee of payment is conditional upon the presentation of the documents related to the export in accordance with the terms and conditions of the letter of credit.
- Terms: The Importer's bank assumes responsibility for paying to the exporter and authorizes payment only for documents that comply with the terms and conditions of the letter of credit. Letters of credit are generally irrevocable, which means they cannot be modified or canceled except with the consent of the parties, including the seller.
Advantages of using the credential letter:
- Payment Guarantee: Payment is guaranteed by the importer's bank before export. Letter of Credit provides security of payment date.
- Facilitates the granting of international trade credits: The importer's bank will guarantee payment to the exporter, sight or maturity, after receiving the documents. The L / C capability to guarantee a future payment encourages the exporter to grant broader payment terms to the importer. For example, payment can be made to the exporter 60 days after sight, or 90 days after the transport document.
- Risk mitigation: Letters of credit eliminate the exporter's risk of not recovering the value of the exported goods. Letters of credit may also eliminate the risk of non-payment by the counterparty, its bank or country risk if the letter of credit is not confirmed by the exporter's bank. Confirmation implies that the credit risk of the bank of the importer (and of his country) is taken over by the exporter's bank against the payment of an additional commission.
- Access to finance: The documentary credits provide access to finance after delivery without recourse to the exporter and may also reduce the cost of credit to the exporter as well as the need for the exporter's bank to maintain strict control of the credits granted through these types of financing.
- Eligibility: Eligible for post-funded guarantees with confirmed credential letters, all exporters, whether or not they have an account with Credit Europe Bank (Romania) SA. The confirmation is subject to the approval of credit limits for banks and countries where importers' banks are domiciled.
Through warranties, an importer is guaranteed by the exporter's bank a payment of a certain amount. Execution of the letter of guarantee may be required if the exporter either fails to meet his export obligations under the contract and / or does not deliver the goods as agreed. This type of guarantee is very effective in complicated and large-scale contracts.
Exporters often require guarantees to support their financial performance and creditworthiness. These guarantees are generally payable on request, or upon submission of additional documents.
There are several types of guarantees available to exporters.
- Return guarantee: Guarantees the return of any prepayment. - Generally issued for 100% of the prepayment amount.
- Performance guarantee: Guarantees performance of the exporter. - It is generally issued for 10-20% of the contract value.
- Tender Warranty: Used for any contract auctions. It is generally issued for 5-10% of the value of the contract.
In some countries there are legal regulations that the guarantees issued for contracts are issued by local banks and local law applies. The nature of these guarantees and the requirement to be issued locally denotes that they can often be difficult to cancel. It is advisable for the exporter to trust the importer.
- The export guarantor is an essential element for winning contracts within certain markets.
- Building trust.
- It gives the importer confidence in the exporter's good financial situation and in his ability to meet his obligations.
- A letter of guarantee for the exporter improves the relationship between the importer and the exporter and the credibility of the importer.
These products are available to all Credit Europe Bank (ROM) S.A. customers, provided that they have a credit line approved by the bank.