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    2010 Guarante Export Nordea

    Uploaded by

    Atthippattu Srinivasan Muralitharan
    This document discusses guarantees for exports, which can be used to secure against risks like non-payment or non-delivery. It describes common types of guarantees including advance payment, payment, and performance guarantees. Advance payment guarantees allow buyers to pay sellers in advance by guaranteeing refunds if delivery fails. Payment guarantees secure payment if a buyer fails to pay. The document also explains how Nordea Bank can issue guarantees to further reduce risks for exporters.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    2010 Guarante Export Nordea

    Uploaded by

    Atthippattu Srinivasan Muralitharan
    32 views2 pages
    This document discusses guarantees for exports, which can be used to secure against risks like non-payment or non-delivery. It describes common types of guarantees including advance payment, payment, and performance guarantees. Advance payment guarantees allow buyers to pay sellers in advance by guaranteeing refunds if delivery fails. Payment guarantees secure payment if a buyer fails to pay. The document also explains how Nordea Bank can issue guarantees to further reduce risks for exporters.

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    Bank Guarantee

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    This document discusses guarantees for exports, which can be used to secure against risks like non-payment or non-delivery. It describes common types of guarantees including advance payment, payment, and performance guarantees. Advance payment guarantees allow buyers to pay sellers in advance by guaranteeing refunds if delivery fails. Payment guarantees secure payment if a buyer fails to pay. The document also explains how Nordea Bank can issue guarantees to further reduce risks for exporters.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    32 views2 pages

    2010 Guarante Export Nordea

    Uploaded by

    Atthippattu Srinivasan Muralitharan
    This document discusses guarantees for exports, which can be used to secure against risks like non-payment or non-delivery. It describes common types of guarantees including advance payment, payment, and performance guarantees. Advance payment guarantees allow buyers to pay sellers in advance by guaranteeing refunds if delivery fails. Payment guarantees secure payment if a buyer fails to pay. The document also explains how Nordea Bank can issue guarantees to further reduce risks for exporters.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    Guarantees for exports

    - improving your international trade

    Secure against the unexpected. Obtain advance payment


    Advance payment is naturally beneficial to you as
    the seller, but buyers can be reluctant to pay in
    Guarantees are commonly used to cover the risk advance due to the risk of not receiving a refund in
    of non-compliance by a contract party to fulfil case of non-delivery.
    agreed obligations, e.g. failure to pay or deliver.
    Guarantees can be used in open account trade as By offering the buyer an advance payment guarantee
    well as a complement to collections and documen- you increase the likelihood of obtaining an advance
    tary credits. or partial advance payment, also when you trade
    under collections or documentary credits.
    Common types of guarantees
    Advance payment guarantee Secure the payment
    Payment guarantee If you trade on an open account basis or use collec-
    Performance guarantee tions, you rely on the buyer being willing and able to
    pay as agreed. A payment guarantee in your favour
    On demand or accessory securing the buyers payment obligations will provide
    On demand guarantees are independent of the you with compensation should the buyer fail to pay.
    underlying trade contract and payable directly
    upon the beneficiarys claim, while accessory In order for you to further reduce your risk, if you
    guarantees are connected to the underlying and your buyer so agree and at the request of your
    contract and payable upon the guaranteed partys buyers bank, Nordea can issue* the payment
    actual default under the contract. guarantee in your favour. This way your risk is on
    Nordea instead of the buyers bank.
    *) subject to credit approval.
    Nordea Bank AB (publ) Marketing 05.10 (19760003)
    How it works In cases of claims for payment under the guaran-
    First you and the buyer agree on the terms of the tee, Nordea will check the claim as well as inform
    contract (1). In this case your buyer agrees to you, depending on the nature of the guarantee, as
    effect advance payment against a direct advance to whether you should effect payment or possibly
    payment guarantee. You will then apply for the refuse until your actual contractual default has
    guarantee at Nordea (2). Nordea issues the been determined.
    requested guarantee based on the information
    in the contract between you and your buyer. Welcome to contact us and to find out more about
    how we can assist you with your trade finance
    The guarantee is then advised to your buyer transactions. You can also find us on the web
    directly from Nordea as an original paper version nordea.com/tradefinance
    (3) or by SWIFT through a correspondent bank as
    a post office (3a & 3b). You are now ready to
    start the trade (4).

    buyer 1 Agreement
    seller
    Beneficiary Principal

    4 Shipments & Payments


    3b Advising

    2 Application
    3I
    ss
    ua
    nc
    e&
    Ad
    vis
    ing

    buyers bank
    Issuing Bank
    3a Issuance

    !
    Nordea Trade Finance:

    Located in Denmark, Finland, Norway and Sweden as well as in China, Estonia,


    Latvia, Lithuania, Poland, Russia, Singapore, UK and USA.
    Offers a full range of trade finance services including collections, documentary
    credits and guarantees as well as trade finance related e-solutions.
    Is the largest Trade Finance Bank in the Nordic region.

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