Discounting of the Obligation of the Deferred Payment under the LC

With the purpose to stimulate and develop export, Priorbank offers the service of discounting of the obligation of the deferred payment under the LC (hereinafter referred to as discounting) by granting the deferred payment to the importer and closing of the foreign trade transaction by the exporter after shipment (delivery) of goods, execution of works, rendering of services, using the LC.

Discounting – provision of funds to the exporter by the Nominated Bank (Priorbank) prior to the maturity date under the LC with the deferred payment, provided the exporter has presented to Priorbank the documents constituting a complying presentation (the presented documents must comply with the LCs terms and conditions, applicable rules and international standard banking practice).

Advantages of Discounting for the Exporter

  • Export Geography Expansion

    Export Geography Expansion

    Discounting enables to increase competitiveness of sales by providing to the importer of the deferred payment for the shipped goods, executed works or rendered services.

  • Efficient Finances Management

    Efficient Finances Management

    The exporter is provided with an opportunity to receive export revenues and close the foreign trade transaction immediately after the goods have been shipped (delivered), works have been executed, services have been rendered.

  • Receiving of cash from the bank under the simplified procedure

    Receiving of cash from the bank under the simplified procedure

    Discounting is provided with the right to receive reimbursement to the amount of the due representation under the LC from the Issuing Bank upon the maturity of payment under the LC according to the deferral.

How to use the service

  • Step 1.

    Conclude a foreign trade contract

    Conclude with the importer the foreign trade contract stipulating LC settlement form for export.

  • Step 2.

    Receive the LC

    Receive the LC with deferred payment (minimum 15, maximum 180 days) with instructions on its confirmation in Priorbank.

  • Step 3.

    Apply to Priorbank

    Conclude with Priorbank the discounting agreement.

    Submit to Priorbank the documents under the LC and discounting instructions, assign to Priorbank the rights to claim and receive the revenues under the LC.

    Pay remuneration to Priorbank for discounting.

  • Step 4.

    Receive cash

    Receive cash to current (settlement) account with Priorbank.

List of Fees and Commissions for Discounting of the Obligation of the Deferred Payment under the LC

Discounting arrangement fee

100 EUR

Fee for cash provision

as agreed by the parties, minimum - 50 EUR per month

Fees/commissions shall be payable within the periods stipulated by the Discounting Agreement in the discounting currency. If the discounting currency differs from the discounting arrangement fee, it shall be paid at the basic exchange rate set by the Bank as at the date of the written notification by the Bank on the date of the planned discounting and calculation of the discounting remuneration amount. The minimum is calculated based on the number of days of the Issuing Bank's obligations validity.

Fees/commissions shall be payable within the periods stipulated by the Discounting Agreement in the discounting currency. If  the discounting currency differs from the discounting arrangement fee, it shall be paid at the basic exchange rate set by the Bank as at the date of the written notification by the Bank on the date of the planned discounting and calculation of the discounting remuneration amount. The minimum is calculated based on the number of days of the Issuing Bank's obligations validity.