Documentary Business & Guarantees.

 

Cross-border trading entails a higher risk than domestic trading. Furthermore, the importer focuses his attention primarily on timely supply in the agreed quality and quantity, while the top priority of the exporter comprises timely payment in accordance with the agreement.

Letters of credit, collection and guarantees are important instruments for safeguarding cross-border transactions between importer and exporter. Drawing up documents that are in accordance with the terms and conditions of the letter of credit is a requirement for the security function of the letter of credit.

 
Contacts

Landesbank Baden-Württemberg
Am Hauptbahnhof 2
D-70173 Stuttgart

Fax: +49 711 127-74317

kontakt@LBBW-international.de

Documentary Letter of Credit.

 

The documentary letter of credit is a common method of payment, particularly in non-European trade.

The importer’s bank undertakes to pay the exporter, a promise which is fulfilled once the required documents have been presented and the credit terms complied with.

Once the documents representing the goods have been presented, the importer’s bank validates them and pays the invoice.

If as the exporter you are unwilling to bear the bank and country risk of the issuing bank personally, LBBW can hedge your risks by adding its own confirmation or a silent confirmation, taking into account any extended payment terms which might have been agreed with the buyer for reasons of competition or similar. The resulting short or medium term receivable can be bought by LBBW from the exporter to reduce the strain on the balance sheet (forfaiting).

You will get the forms needed to open a letter of credit (import and export) and for document presentation (export) from your Fachberater International Business.

Ask our Fachberater International Business for checklists related to business with letters of credit.

 
Contacts

Landesbank Baden-Württemberg
Am Hauptbahnhof 2
D-70173 Stuttgart

Fax: +49 711 127-74317

kontakt@LBBW-international.de

Documentary Collection.

 

The extent of the security offered by collection depends very much on the type of dispatch document used. If this is required to take possession of the goods (e.g. bill of lading), the exporter can assume that he will remain in possession until payment has been made.

Other documents such as the certificate of origin also illustrate why collection makes sense if the documents are required for customs clearance.

You will find the forms needed for document presentation from your Fachberater International Business.

Ask our Trade & Export Finance Experts for checklists related to the drawing up of documentation.

 
Contacts

Landesbank Baden-Württemberg
Am Hauptbahnhof 2
D-70173 Stuttgart

Fax: +49 711 127-74317

kontakt@LBBW-international.de

Guarantees.

 

Your company is global active?

The risks related to your daily import or export business needs to be secured. A wide range of risks can be hedged with the issuance of bank guarantees common to cross-border trade. It is recommended that foreign transactions are secured with a bank guarantee because guarantees are worldwide accepted.

In addition to competent and reliable processing we offer also additional services such as training and checking sample texts. We help you to discover possible risks and to realize benefits for you. Our standard texts are available in German, English and French.

Take advantage of our experience and the know-how of our specialists.

You will receive the relevant information from your consultant.

 
Contacts

Landesbank Baden-Württemberg
Am Hauptbahnhof 2
D-70173 Stuttgart

Fax: +49 711 127-74317

kontakt@LBBW-international.de

 

Export Management.

 

How can export transactions be optimized quickly and securely at a reasonable price while maintaining quality?

Export companies receive a wide range of documentary letters of credit, particularly from the emerging markets. These must be serviced by the advising bank to ensure that the export revenue is received and can be booked.

Companies and banks therefore employ good quality clerks - clerks who are highly paid. The cost of producing and handling the export documentation is paid twice over.

Landesbank Baden-Württemberg has therefore developed a service which perceptibly reduces the administration required in the company. Part of the export process is outsourced and the costs are reduced significantly.

Instead of high fixed costs, the prices incurred can be calculated exactly and only apply when an export transaction actually takes place.

The advantages:

  • Payment security
    - Improved quality of letter of credit documentation
    - Fewer conditional payments
    - Reduction in the risk of delays and defaults on payment
    - Exploitation of the expertise of bank specialists

  • Reduction in expenses
    - Fewer qualified staff
    - Lower administration costs
    - Greater ease of planning where incoming payments are concerned
 
Contacts

Landesbank Baden-Württemberg
Am Hauptbahnhof 2
D-70173 Stuttgart

Fax: +49 711 127-74317

kontakt@LBBW-international.de

LBBW-E@syDocs.

 

Documentary Business is an important part of risk prevention. Regarding competition the following targets have to be fixed in the business strategy:

  • reaching high efficiency
  • optimizing processes
  • reducing costs

LBBW-E@syDocs contributes sustainably to reach these targets. It minimizes operational risk and increases efficiency in processes. LBBW-E@syDocs is the turnkey solution for the electronic execution of documentary business between the Bank and the customer.

Advantages

  • Electronic messaging for letters of credit, guarantees and collections
  • Entering, releasing, checking and managing transactions
  • No additional software, no installation or maintenance requirements
  • Proven security system
  • Direct access to pending and completed transactions
  • Swift processing thanks to templates and ability to copy
  • Integrated schedule monitoring
  • User-optimized plausibility check
  • Hotline for any technical or non-technical questions
 
Contacts

Landesbank Baden-Württemberg
Am Hauptbahnhof 2
D-70173 Stuttgart

Fax: +49 711 127-74317

kontakt@LBBW-international.de

 
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