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Sberbank's financing of payments under the L/Cs issued by counterparty banks.

Essence:

  • Finance is provided under a letter of credit issued by the counterparty bank for the supplier
  • Sberbank of Russia grants a loan to the counterparty bank that issued the said L/C for making the payment under the L/C in favour of the supplier.

Receivers

  • Exporters and suppliers of goods and services in Russia that should grant a delay of payment to their contractual counterparties.

Advantages and opportunities:

  • Receipt of proceeds for the shipped goods, replenishment of the client's working capital without an increase of the loan debt and making loan agreements
  • Possibility for the supplier's counterparty (buyer) to obtain a loan at Sberbank of Russia (on favourable terms)
  • Minimisation of non-payment risk for the exporter and non-delivery risk for the importer
  • The exporter's capability to increase the scope of supply and work, inter alia, with unknown partners.

What for?

  • The supplier collects the proceeds several days after submission of shipping documents to Sberbank of Russia;
  • The buyer can, according to the contract, using the loan provided to its bank, obtain a time extension and sell goods to repay the debt.

Pricing:

  • L/C commission.

Specifics:

  • Export mainly to CIS countries
  • Loro account of the counterparty bank opened with Sberbank of Russia
  • The finance amount does not exceed the limit established for the correspondent bank.

Contacts

Moscow Bank - Trade Finance Operations Department

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