Global Trade Finance | Ulster Bank

Documentary Collections

Cover your business against performance risk. Negotiate new payment terms with suppliers, offering better security for both sides.

Improved cashflow

When importing, you don't pay until you receive shipping confirmation – so you keep your cash for longer. When exporting, deferred payment collections can often be discounted with your bank.

Cost-efficient and easy to use

There's no need for a capital-weighted bank facility, and documentation is turned around quickly.

Added security

Importers only pay once there's proof of shipment, so it's more secure than paying for your goods in advance. If you're exporting, you keep control of the documents until the goods have been paid for or a bill of exchange has been accepted.

Universally regulated

Documentary collections are subject to globally recognised rules issued by the International Chamber of Commerce.

Bonds, Guarantees and Standby Letters of Credit

A Bond or Guarantee gives a buyer the security of a financial guarantee in the event of the seller's failure to meet its contractual obligation. If the seller fails to deliver the goods or services as described in the contract with the buyer, the latter can 'call' the Bond, Guarantee or Standby Letter of Credit to receive financial compensation from the bank.

A Standby Letter of Credit is similar to a Bond or Guarantee. It is the primary guarantee instrument used in North America.

• Bid or Tender Bonds - Issued by the supplier in support of a contractual tender.
• Performance Bond - Issued by the supplier in order to support their performance obligations under the commercial contract.
• Advance Payment and Progress Payment Guarantees - Issued by the supplier when the buyer has provided a down payment for the supply of goods or services.
• Payment - The supplier receives a Guarantee from the buyer to support their financial obligations under a commercial contract.
• Customs Bonds / Custom Duty Deferment Guarantee / H.M. Customs & Excise Guarantee - This allows a company to defer payment of duty or tax.
• Standby Letter of Credit - Covering a buyer's financial obligation in relation to the purchase of goods and services in Northern America.