A banking guarantee is an instrument securing due effecting of all contracted obligations, i.e. a protection from the risk of failure to complete such obligations.
In order to provide for payment of and performance of obligations agreed upon, the Bank will, at a Client’s request, issue a certain type of guarantee undertaking an irrevocable obligation to pay a given sum of money to the Beneficiary, should the Client fail to perform the undertaken obligation.
A Banking Guarantee is intended to the following:
Legal entities regardless of type of registration, having an account with ProCredit Bank.
Private individuals meeting the following criteria:
- Citizens of Bosnia and Herzegovina with permanent residence in Bosnia and Herzegovina
- Stable income, at least 3 months prior to filing an application for banking guarantee
- 100% deposit-secured banking guarantee
TYPES OF BANKING GUARANTEES OFFERED:
For legal entities:
We offer the following types of guarantees to our clients dealing with importation of goods, arranging advance payments, taking part at tenders, dealing with contracting business, or having an obligation to pay indirect tax (import-export duties, excise, etc).
· Payment guarantees
· Advance guarantees
· Customs guarantees
· Tender guarantees
· Performance bonds
· Warranty period guarantees
For private individuals
- Customs guarantee
- Tender guarantees
DOCUMENTARY LETTER OF CREDIT
A Documentary Letter of Credit (LC) is a written undertaking given by a bank on behalf of an a Client (Importer) to pay the Beneficiary a given sum of money, providing that the Exporter presents documents which comply with the terms laid down in the Letter of Credit.
Regardless of type of registration, LC is intended to legal entities dealing with the activities of export and import, as well as to other companies and entities needing this payment instrument, and, also, having an account open at ProCredit Bank.
A documentary letter of credit as a payment instrument provides security to all the parties involved in the international payment transactions:
· Buyer is confident that the payment against the Documentary Letter of Credit will be performed only in case when Seller, within the timelines provided, has submitted all the required documents related to the Letter of Credit.
· Seller is confident that, by submitting of orderly dispatching and commercial documents noted in Letter of Credit, provided that all the requirements laid down under the Letter of Credit have been met, they will be able to charge the counter-value of the exported goods, i.e. service rendered, since the payment is guaranteed by the bank that has opened Letter of Credit and/or confirmed Letter of Credit.
Prior to issuing of Letter of Credit, Buyer and Seller should agree on the following:
· Conditions referring to payments of the Documentary Letter of Credit, as well as transportation clause
· Type of documentary Letter of Credit, as well as documents to be presented (invoice, packing list, transportation document, certificate of origin, etc)
· Issuance and expiry dates of Documentary Letter of Credit
We offer the following types of Documentary Letter of Credit:
· Irrevocable Documentary Letter of Credit
· Non-transferable Documentary Letter of Credit
· Non-confirmed Documentary Letter of Credit
· Confirmed Documentary Letter of Credit
· Documentary LC payable at sight
· Deferred payment Documentary LC, etc.