Documentary letter of credit

A documentary letter of credit represents an obligation of the bank acting at the request of the buyer to effect payment of goods or services, in favor of the supplier within the agreed time, following the presentation of documents in accordance with the terms and conditions of the letter of credit.

Payment by means of a letter of credit may be arranged in both international and domestic business.

Benefits

1. Security of realisation of a contracted deal
   The most widely used international payment and payment security instrument, which provides you and your business partner with a high level of security of realisation of the contracted deal, as well as additional possibilities of negotiation with regards to price and other terms and conditions, such as payment maturities, required documents etc.
2. Payment and takeover of goods are possible only provided that certain conditions are fulfilled
   The letter of credit provides security to the buyer (importer) that payment will be effected only in case of presentation of required documents by the seller (exporter) and that it will receive the goods per the contract, whereas it guarantees to the seller that it will collect payment for the goods delivered provided that it has fulfilled the conditions agreed in the letter of credit. It also provides the buyer with the insurance that he will receive the goods as per the contract whereas it guarantees the seller that he will collect payment for the goods delivered provided that he has fullfilled all conditions agreed in the letter of credit.
3. Reduce the risk of a foreign partner and its bank through confirmation of a loro (export) letter of credit
   If you as the seller (exporter) arranged with your partner opening of a letter of credit in your favour, the risk of your payment depends on the creditworthiness of the buyer's bank, and not on the creditworthiness of your buyer. We can offer you a possibility of additional insurance against the risk of payment of the buyer's bank by means of the confirmation of the loro export letter of credit opened in your favour. By confirmation of the letter of credit we give a firm commitment that we shall pay the letter of credit sum according its terms and conditions from the letter of credit, irrespective of the fulfilment of the payment obligation by the buyer's bank which issued the letter of credit.
4. Improve your liquidity by forfaiting of letter of credit
   If you have arranged with your domestic or foreign buyer the issuance of deferred payment letter of credit, in your favour, we can offer you purchase of receivables from the letter of credit before expiry, thus improving your liquidity without new indebtness. 
5. A full and comprehensive service
   We provide a complete service in relation to documentary letters of credit in the country and abroad, import (nostro) and export (loro) letters of credit, from opening or advising, completing of documents and amending letter of credit conditions, to payments under letters of credit, and additional possibilities of financing through forfaiting letters of credit.  
6. Faster, more efficient and simpler delivery of requirements
   Delivery of requests for issuing guarantees and letters of intent using e-zaba
7. Providing expert advice
   Years of experience and expertise in standard and complex transactions, our professional and trained staff and numerous awards in the field of trade finance vouch for a high quality of service.
8. International presence of UniCredit Group and a large correspondent banking network
   Zagrebačka banka and UniCredit Group represent a strong partner that can support your international business operations.