Trade finance

VUB bank offers various forms of foreign business transactions financing with a variety of possible combinations, tailored to client’s needs. The bank has rich experience in this area and works with an extensive chain of correspondents and contacts. Therefore, it is well disposed for efficient assistance in searching for appropriate solutions and default risk hedging. The bank can also provide advisory on adequacy of the proposed contract payment terms, design suitable form of financing, procure funds, arrange guarantees securing any client’s liabilities.


If you are interested in pre-export financing, please contact our corporate branch nearest to you or Export and Trade Finance Sub-department.

Contact

VUB, a. s.
Trade Finance Department
Mlynske nivy 1
829 90 Bratislava 25
Tel.: 02/5055 2625, 02/5055 2784, 02/5055 1550
Fax: 02/5055 2091
E-mail:

Pre-export financing

Pre-export financing will help you obtain funds to cover your export contract. The funds can be used for purchasing material and raw material, financing production process and also settling an export receivable.

Benefits

  • provision of loan to cover export contract before a receivable originates
  • access to funds also in case of a less solvent seller
  • loan repayment tied to settlement of a receivable by a buyer
  • optional insurance of buyer’s political and commercial risk with EXIMBANKA SR
  • more relaxed loan collateral requirements if a bank guarantee covering a loan issued by EXIMBANKA SR

Requirements

  • submitting a contract made with a buyer
  • acceptable terms of payment (a payment by L/C or covered by a bank guarantee an advantage)
  • provision of a loan up to 80% of exerted expenses related to purchase of material and sub-supplies
  • purpose-bound loan drawdown, i.e. against subsupplier´s invoice and invoice for purchasing material
  • loan repayment from incoming payments from a buyer
  • optional insurance with EXIMABANKA SR to eliminate buyer’s payment risk
  • provision of a loan subject to issuing a bank guarantee covering the loan in favour of the bank

If you are interested in pre-export financing, please contact our corporate branch nearest to you or Export and Trade Finance Sub-department.

Contact

VÚB, a. s.
Sub-department 3801 – Export and Trade Finance
Mlynské nivy 1
829 90 Bratislava 25
Tel.: 02/5055 2625, 02/5055 2281, 02/5055 1558
Fax: 02/5055 2091
E-mail:

Export business loan

The bank provides an export business loan to a foreign bank or directly to your buyer abroad. Providing the loan, you will receive a payment for goods immediately upon their delivery. The foreign bank or buyer will repay the loan to the bank under agreed repayment schedule.

Primarily export of investment units and machinery is financed on export business loan. Loan usually covers up to 85% of a contract value, whereas such value should be higher than EUR 1,000,000. Provision of loan is subject to loan insurance with EXIMBANKA SR and payment of minimum 15% of the contract value by a buyer in advance.

Benefits for you

  • we will disburse funds for delivered goods immediately upon delivery of goods and acceptance of export documents
  • a foreign buyer or a foreign bank is a borrower
  • we and EXIMBANKA assume a risk of loan default
  • buyer’s credit provides long-term loan repayment to a foreign buyer
  • interest costs are lower than interest costs provided by a bank in buyer’s seat

Contact

VÚB, a. s.
Sub-department 3801 – Export and Trade Finance
Mlynské nivy 1
829 90 Bratislava 25
Tel.: 02/5055 2625, 02/5055 2281, 02/5055 1558
Fax: 02/5055 2091
E-mail:

Invoice discounting

In addition to loans and factoring you can also finance your receivables through invoice discounting. It is a purchase of your receivables before they mature. This way you can assign a receivable to VUB Bank that will pay a face value of an invoice (receivable) to you reduced by a discount.
VUB Bank buys trade receivables, i.e. receivables that originated upon delivery of goods or services.

Benefits for you

  • we will disburse funds to you immediately after a receivable originates
  • we will provide funds up to 100% of invoice’s face value
  • you will ease your balance sheet and accelerate cash flows
  • you will enhance your competitiveness in the market by providing a deferred payment (30 and more days)
  • you do not need any other security except for receivables (value of which is satisfactory to the bank)

Invoice Discounting requirements

  • entering into a business contract with a buyer under clearly specified terms of payment
  • the minimum 30-day agreed invoice maturity
  • performing receivables
  • buyer’s consent to assignment of a receivable
  • good business relations with a buyer based on mutual trust
  • a buyer meets his financial commitments in due time

If you are interested in selling your receivables through invoice discounting, please contact our corporate branch nearest to you or Export and Trade Finance Sub-department.

Contact

VÚB, a. s.
Sub-department 3801 – Export and Trade Finance
Mlynské nivy 1
829 90 Bratislava 25
Tel.: 02/5055 2625, 02/5055 2281, 02/5055 1558
Fax: 02/5055 2091
E-mail:

Guarantees

  • contracting parties seek assurance that the counter party isable to perform its commitments in accordance with the contract terms
  • banking practice recognises several ways of securing fulfillment of its business partner’s liability
  • security (guarantee) is used for securing other liability: a guarantee is able to cover any risks (insolvency, unwillingness of a debtor/buyer, or failure of a supplier to perform its contractual obligations),
  • guarantee represents a unilateral legal act of the bank. After the beneficiary receives the guarantee and any modification to the guarantee, or revocation/cancellation of the liability is subject to the beneficiary’s consent.

VUB bank provides the following types of guarantees securing clients’ liabilities:

  • bank guarantee,
  • stand-by Letter of Credit,
  • custom bond,
  • guarantee to secure excise tax on mineral oils, alcohol, beer, wine, tobacco,
  • toll guarantee,
  • guarantee to secure VAT,
  • guarantee to cover environmental damage.

In addition to guarantees, the bank provides also letter of indemnity, by which the promiser (bank) assumes liability to the promisee for indemnification of any damages incurred in consequence of its conduct required by the promiser, if such conduct is not mandatory (e.g. a shipper is not obliged to release the goods without presentation of the original Bill of Lading. If the shipper releases the goods upon request of the consignee/consignor who has lost the document, it assumes the risk that the original Bill of Lading will be presented by a third party, which will be then entitled to settlement as owner of the consignment).

Terms and conditions for providing of guarantee

  • proveneconomic return of the deal - i.e. proving  client’s capability to perform its contractual obligations, pay the price for the guarantee, and refund the bank the full amount of any payments made under the guarantee;
  • specific-purpose of the deal - the bank shall issue a guarantee only for the specific purpose indicated in client’s application for a guarantee, which must be related to client’s scope of business activity;
  • the bank shall not provide any guarantees related business which constitutes breach of public order, good morals, or  environmental damages;
  • security of the deal - the guarantee and applicable refunds must be adequately secured, and forms of such security must be legally incontestable and effective as of the date of guarantee provision. Instruments used by the bank for securing its trade receivables include:
            • guarantee of a creditworthy bank,
            • guarantee of the SR government,
            • disposal restrictions imposed on the client’s deposit accounts kept with VÚB,
            • pledge over immovable assets,
            • pledge over movable assets, securities or receivables,
            • third party guarantee,
            • receivable assignment.
  • guarantee applications submitted by entrepreneurs must be executed in writing
  • documents supporting a guarantee application:
            • up-to-date extract from the Commercial Register or trade certificate,
            • financial statements,
            • business plan,
            • deal security documents,
            • documents related to the purpose of the deal (contract),
            • other documents as required by the bank depending on its knowledge of the client, type, amount and duration of the required guarantee




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