Trade finance

We make guarantee and settlement instruments available, as well as structured funding means used in local or international commerce.

Documentary letters of credit is one of the most popular payment instruments used in the international commerce (used also, less frequently, for domestic trade) and gives the seller an irrevocable payment undertaking from the issuing bank, which simultaneously guarantees the buyer that payment will only be made when the receipt of the shipping documents presented are in strict compliance with the terms and conditions of the documentary letter of credit.

Letters of guarantee/ standby L/Cs are irrevocable payment undertakings issued by a bank, at its customer’s request, for the payment of a sum of money to the beneficiary of the guarantee, after the beneficiary makes a peyment request to the Bank in accordance with the terms and conditions stipulated in the letter of guarantee. The letter of guarantee ensures a commercial contractual obligation (either a financial or a performance duty) and can take various forms depending on its purpose.

Documentary Collections – also called incasso - represent an instrument through which the bank processes documents (commercial and/or financial) received from the seller in accordance with their instructions, in order to:

  • Obtain acceptance and/or payment of documents;
  • Deliver documents against acceptance and/or payment (as the case may be);

If you have a commercial history with your client then Documentary Collection, as a payment method, is probably your best commercial option.


As a supplier or producer involved in the domestic or international supply or production of goods, turnkey projects, and related services, you may have to deal with a high level of complexities and risks. UniCredit Bank Structured Trade and Export Finance team can help you with tailor-made solutions for:

  • Forfeiting/ purchase of receivables resulting from the sale of goods/services with fixed maturities (generally for capital goods, turnkey projects, and connected services), that are commonly backed with promissory notes or bills of exchange that result from the delivery of goods and services;
  • Commodity trade finance – designed to finance the purchase of commodities and their processing/ future sales (such as oil and oil products, grains, metals, chemicals, quoted or not quoted on the commodity exchange) guaranteed by the commercial transaction itself as basis to guarantee the loan and by closely observing both commodity flows and cash flows resulting from the sale;
  • Medium term financing for Romanian exports / medium term financing and guarantee of the Romanian imports, using”Buyer’s credit” type of structures and risk mitigation instruments provided by Export Credit Agencies (ECAs) or private risk insurers in the exporter’s country.

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Our product offer also includes: conditional payment orders (similar to the letter of credit mechanism, in its simplest form, without the international rules and standards applicable to L/Cs),  escrow account or performance guarantee accounts (accounts bearing a particular lien, used to secure specific payment or performance obligations), comfort letters (commonly required by the public authorities during their acquisitions procedures) etc.

For additional information, talk to one of our product specialists at tradefinance@unicredit.ro or contact your Relationship Manager.

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