We understand that punctual delivery, as well as timely payment of overseas partners, is vital for the international trade in goods and services. ProCredit Bank therefore offers letters of credit to significantly improve the reliability of business relationships and facilitate work with your suppliers and customers.

ProCredit Bank guarantees the payment process, which is of the utmost importance for every business.


What is a letter of credit?

A letter of credit can help you to secure payment for the delivery of goods and services. It represents an obligation for payment undertaken by the bank (issuer) in written form, issued upon the order and instructions of the applicant, for payment of a certain amount to the beneficiary of the letter of credit after the terms set forth in the letter of credit have been fulfilled.

In order to provide these terms, the beneficiary has to present accurate documents to the nominated bank as a proof that the goods have been delivered during the exactly determined period of time and in a manner specified in the letter of credit.


What types of letter of credit does from ProCredit Bank offer?


Sight payment credit

Payment of these types of credit shall be performed at sight, i.e. upon presentation of a promissory note, and/or other documents, which shall be presented to the bank nominated to perform the payment. This bank shall perform the payment if all the documents are in accordance with the terms of the letter of credit. The terms allow the nominated bank to perform the payment five days from the day of acceptance of the documents at the latest.


Deferred payment credit

The issuing bank guarantees that it will conduct the payment on the exactly designated date in future, if the documents satisfy the demands set forth in the letter of credit.

Therefore, the bank pays the amount of the documents depending on the terms stated in the letter of credit on a future date (e.g. 60, 90 days) i.e. XX days from the acceptance of the documents which are in compliance with the terms of the credit.


The confirmed credit

By confirming the letter of credit, the advising bank undertakes the liability to perform the payment specified in the documents which have been presented and validated. This liability is independent of the irrevocable liability of the issuing bank. The confirming bank assumes its liability for payment regardless of whether the issuing bank is in position to perform the payment.


Is ProCredit Bank rated by an international ratings agency?

ProCredit Bank is the only bank in Macedonia with a Fitch Rating of BBB-, with a steady trend of development. This rating can be communicated to your business partners in Macedonia and abroad.


How can I apply for a letter of credit?