Documentary collection
Municipal Bank AD accepts and processes collection documents related to export of goods, as well as documents received for collection for import of goods and services.
Collection operations are recommended for customers with long-term commercial relations and established trust. Banks are not responsible and have no commitment to pay when this form of payment is used.
Documentary collection does not cover commercial and political risk, or the risk of non-payment.
Main types of documentary collections:
- against acceptance of drafts;
- against payment of documents.
Commission fee for documentary collection: 0,20 %, min. EUR 40,00.
Documentary Letter of Credit
Unlike the documentary collection, the documentary letter of credit is a bank's commitment to pay the buyer a certain amount for the delivery of goods or the performance of a service upon the fulfillment of certain conditions (submission of documents)
This form of payment is mainly used in cases where:
- the buyer and the seller do not know each other well and do not trust each other;
- there are doubts regarding the buyer's solvency;
- there is political and economic instability in the buyer's country.
Municipal Bank AD has a qualified team that offers consultation even before the conclusion of the commercial agreement for the purpose of providing maximum protection and negotiation of favorable conditions for the client, as well as consultations for drafting various documents. The bank offers preliminary review of documents, as well as discounting of documents under a letter of credit subject to compliance with certain requirements.
Commission fees:
- for letters of credit opened by the Bank:
- not confirmed - 0,25 %, min. EUR 100,00;
- confirmed - 0,50 %, min. EUR 150,00;
- change - EUR 50,00;
- for letters of credit received from another bank:
- notification: 0,2 %, min. - EUR 50,00, max.- EUR 500,00;
- document processing - 0,1 %, min. ЕUR 50,00 max ЕUR 100,00
- change - EUR 25,00.
International bank guarantees
International bank guarantees are issued to guarantee the fulfillment of contractual obligations in foreign trade transactions in terms of good performance or payment.
The main types of bank guarantees issued by Municipal Bank AD are:
- Performance guarantee
- Guarantee for tender participation
- Advance payment guarantee
- Payment guarantee
A bank guarantee is a type of credit transaction.
The bank offers consultations and provides sample texts for various types of guarantees.
Commission fee for issuing a bank guarantee:
- in case of cash collateral - 0,25%, min. EUR 50,00;
- in case of other types of collateral - 0,5%,min. EUR 50,00.