International trade is a complicated process. Frequently the deals between the buyer and the seller are dealt without previous meeting or not knowing the financial situation of each other. In all cases, it should be taken into account that the buyer and the seller can be separated not only by the nature obstacles – the sea, the ocean, etc. – but also by different rules and regulations existing in the particular country.
Since the goods are followed by the trade documents in the way between the buyer and the seller, these documents give the buyer and the seller a possibility to involve bank in the international trade as a mediator and an authorised person.
Letter of credit and documentary collection are the most common and widely used types of payments in the international trade transactions. They insure a significant bank’s role in realization of the deal as well as in financial and commercial risks reduction.
Every company that signs a contract expects that it’s partners will meet the contract conditions and liabilities.
Danske Bank offers: