Documentary Trade Financing

We offer documentary trade financing — collection and settlement services for conducting trade operations — to businesses engaged in trade with partners in different regions of Russian and abroad.

Documentary trade financing is a flexible and profitable means of developing export transactions, allowing our customers to:

• Receive favourable financing terms for up to 100 per cent of the contract value
• Minimise risk for their company and partner companies abroad, including risk of non-payment and failure to deliver etc
• Optimise trade operations with international partners by using documentary collection.

Advantages of Nordea Bank documentary trade financing:

• Broad spectrum of financing options:
  • Commercial letters of credit in foreign currencies and Russian roubles (with post-financing or discounted deferment of payment, immediate settlement, with or without confirmation by foreign banks according to vendor requirements, discounted export letters of credit etc)
  • Guarantee instruments: direct bank guarantees on behalf of foreign vendors, first-class foreign bank guarantees against Nordea Bank guarantees, standby letters of credit, contract performance guarantees, guarantees on behalf of Russian federal customs agencies, prepayment guarantees etc
  • Clean and documentary encashment
  • The type of financing instrument and method of payment for trade operations are determined with the consent of foreign trade partners.
• Tailored approach for each customer, including set limit of financing:
  • Option to choose optimal method of payment for export contracts in accordance with type of customer business, as well as trade partner
  • The credit limit for offered trade financing can be set prior to opening of a Nordea Bank business account
  • All business turnover in other bank accounts is taken into consideration when setting credit limits; and
  • Businesses that are part of holding companies or have subsidiaries may set a general financing limit for the entire holding or establish financing limits on each individual business based on total turnover for the entire group.

Contacts: Trade & Project Finance