One of the problems which always arises in course of trade operations is the desire of the parties to be protected against problems which may occur in relation to payment for, and delivery of, the goods, this is especially evident in foreign trade transactions. Trade transactions between companies and entrepreneurs from different countries, without varying economic, social and political background, not knowing each other and without experience of previous transactions, may bring a lot of problems related to payment and delivery. To eliminate these problems one will have to expend a lot of time, efforts and money. The role of documentary transactions in avoiding all such problems and ensuring convenience and non-problematic trading is absolutely significant.
Financing of activities of local companies and entrepreneurs is one of the main areas of activities of the Bank. Bank of Baku is pleased to offer its customers a wide ranger of services on trade financing:
- Financial arrangement services provided to companies and entrepreneurs from the first stage of the project;
- Opening, acceptance and management of all categories of LCs, guarantees and encashments for import and export operations;
- Operations with secured and blank, direct and indirect financial instruments;
- Opening of credit lines for trade financing upon attractive terms;
- Consulting services related to preparation and implementation of foreign trade agreements;
Documentary transactions performed through “Bank of Baku” give an opportunity to bring risks associated with non-payment for the supplied goods (or provided services) or with delivery of goods (performance of services) to minimum.
With respect to trade financing activities, at the moment “Bank of Baku” have got extensive links with a number of IFIs, including, the European Bank for Reconstruction and Development, Societe Generale, American Express, Dresdner Bank and other financial organizations.
Rates charges by “Bank of Baku” for trade financing transactions are determined in line with needs and requirements of the clients.