The procedure for issuing financial instruments

 

The procedure of issuing the financial instrument

One of the secrets of well-coordinated work of any company is following the elaborated algorithms that minimize resources consumption and increase productivity. In our company we also have lean business paradigm created not as much to facilitate the work of our employees but more to provide services to our clients at a high level.


Therefore, we kindly ask you to familiarize with the standard procedure of issuing the financial instrument:

1. The Client contacts Profinvest Services LLC.

2. The Client (principal) provides an agreement between the Client and the Supplier (beneficiary) or the respective invoice for us.

3. After studying the documents provided by the Client, we offer a particular financing instrument: a letter of credit, bank guarantee, tender guarantee, stand-by letter of credit, etc.

4. After choosing the financial instrument that meets the current needs, the Client enters into an agreement with our company.

5. We draft the financial instrument on the basis of the acting agreement or invoice and send it to the Client for approval.

6. The Client (principal) discusses the draft with the beneficiary, signs the document and certifies it by seal.

7. We issue an invoice to the Client to pay the fees for financial instrument issuing.

8. According to the approved draft, the bank, chosen by the Client, issues the corresponding financial instrument to the beneficiary bank.

9. After receiving the financial instrument, the beneficiary bank sends it to his client. The beneficiary compiles the documents of title, ships the goods, and sends the shipping documents to the issuing bank.

10. The Client (principal) draws a bill or acknowledgement and the acceptance of payment of the issued letter of credit. The payment shall be done in five days prior to the term specified in the agreement on issuing the financing instrument.

11. The Client receives the merchandise according to the documents of title.

12. The Client pays for the received merchandise by buying back the bill and acknowledgement.