Documentary operations

Documentary operations are a set of bank services commonly used in international trade in order to protect both exporters and importers of goods and services from potential risks such as delivery, settlement, currency fluctuations, legal and other risks related to international commercial operations. 

Advantages of RIB’s documentary operations services: 

  • Lasting cooperation experience with the largest European and Asian banks
  • High quality service in compliance with international standards
  • Prompt document processing
  • A team of qualified and experienced specialists
  • Professional consultations
  • Individual solutions

Letters of Credit

Risks related to international trade related risks may occur at various stages – at purchasing of raw materials, manufacturing and storing of goods, supplying of goods and/or service providing, as well as with settlement operations. Letter of credit protects interests of both seller and buyer and minimises their potential risks.

A letter of credit is an irrevocable liability of the issuing bank to pay to a supplier of goods and/or services the agreed amount in return of the documents indicated in the letter of credit and submitted to the bank within the timeline and in compliance with the terms and conditions of the letter of credit.


Documentary collections

Processing documentary collections, the buyer’s and the seller’s banks both serve as an intermediary between the involved parties handling the documents related to the goods and/or services. The bank releases the respective documents to the buyer only upon an immediate payment or acceptance of a deferred payment liability.

We recommend using the documentary collections if both parties already have a long-term stable business relationship and there is no need for additional security since this type of settlement does not guarantee a payment for the goods and/or services.


Bank guarantees

Frequently business partners face doubts regarding a risk that some of the parties involved may fail to perform their obligations under the underlying relationship. Bank guarantee is designed to reduce the transaction risk.

Bank guarantees are commonly used both in local business and in frames of international trade. Widely known types of guarantees are the following:

  • Tender guarantee
  • Advance payment guarantee
  • Performance guarantee
  • Guarantee period guarantee
  • Payment guarantee

A guarantee is an irrevocable liability of the issuing bank to make an immediate payment to the beneficiary of the guarantee within the specified limits, when the beneficiary submits a claim in compliance with the terms and conditions of the guarantee.

Investīciju Banka can help you spread your financial risk – call our
Customer Info Service: (+ 371) 67 359 000