Danske Banka’s solutions for exporters
With the current decrease of domestic consumption, Latvian manufacturers should look for development opportunities in the field of export. Economic experts indicate on increasing competitiveness of Latvian goods within foreign markets. However, the entrepreneurs are concerned about safety of international transactions, frequently being concluded by and between a purchaser and a seller without a prior meeting or without being informed about the other party’s financial situation.
Danske Banka informs that at the moment it already possesses instruments substantially increasing the safety of international transactions. Commercial documents are enclosed with goods on the way from the seller to the purchaser, therefore the bank acts as a trustee and a guarantor of the transaction’s safety.
Ivars Ērkšķis, Business Banking Director of Danske Banka, comments the solutions offered to the corporate customers: "Thanks to the international experience of the Danske Bank Group and expertise of its employees, we are able to offer our customers the necessary support for making their business operations more efficient and the transactions – safer. Thinking about our customers, we have developed certain services, such as: economic, fast and safe payments, cross connection of the electronic settlement system with the customer’s accounting program, as well as solutions for funds management and commercial financing. The significant increase of our corporate customers base, reaching 25% in 2009, proves the correctness of our approach."
The parties of international transactions are separated by distance, therefore the primary issues are payment for the goods and delivery. In order to ensure the safety of settlements, the exporter should require from the purchaser’s bank a payment guarantee or a credit letter. In case of deferred payment, the exporter risks to not receive the payment or receive it after several months, thus practically crediting the foreign purchaser from one’s own funds. In order to avoid said conditions, Danske Banka suggests its customers – the exporters of goods – for the safety of their transactions to use a Letter of Credit. The Letter of Credit is issued by the purchaser’s bank which guarantees the exporter remuneration for the goods dispatched promptly. If the purchaser wishes to make a deferred payment, while the seller needs working capital, Danske Banka offers to pay the sum of the Letter of Credit right after submission of the commercial documents to the bank.
Although the issues of trade finance might seem complicated, the entrepreneur is not required to be familiar with them. It is important to find a reliable expert. The experts of Danske Banka, specializing in said issues, will suggest the most suitable solution and will help to find clarity within a hive of documents. For the convenience of the entrepreneurs we offer free consultations with a specialist on the telephone or at the bank, while most of the required forms are available at Danske Banka’s home page www.danskebanka.lv, the section for corporate customers.
About Danske Banka
Danske Banka is Latvian branch of Danish Danske Bank. Danske Bank Group is the largest bank in Denmark and one of Northern Europe’s leading financial institutions. Danske Bank Group is widely represented in 14 countries, where almost 22 000 employees are taking care of the daily comfort of 5 million customers.
The aim of Danske Banka is to become the best local partner to its customers in financial issues. The activities of the Bank are characterized by high quality service and individual approach tailored to the needs and requirements of each customer.
Rating agencies have assigned investment category ratings to Danske Bank Group.
Long-term ratings: AA3 (Moody’s); A (S&P); A+ (Fitch).
Short-term ratings: P-1(Moody’s); A-1 (S&P); F1 (Fitch).