Bill avalization

JSC "COMINBANK" provides services of bill avalisation of bills issued by the buyer to settle debts for goods already delivered, services rendered and works performed. The Bank also avalises bills of exchange issued for settlements with the state - bill obligations stipulated by the Tax Code of Ukraine and other regulatory documents of Ukraine.

Product benefits for the Customer:

• Avoiding the diversion of the company's working capital to pay for supplies.
• An optimal tool for settling accounts with the budget when paying taxes and fees.
• Reducing the cost of raising working capital when conducting transactions with commodity bills, due to the possibility of lending when the bill matures.
• Cheaper lending operations: interest rates on avalisation are lower than on lending, and interest is charged only from the moment of actual payment of the bill.
• An opportunity for the seller to sell or use the avalised bill of exchange in further settlements with counterparties.

Aval is provided both for the full amount of the bill and for its part.

Terms of bill avalisation

* The actual term of the bills is paid for by the client.

The process of using bills of exchange

• Conclusion of a contract between a buyer and a supplier on deferred payment terms.
• The seller applies to JSC "COMINBANK" for a decision on bill avalisation and execution of the general agreement on bill avalisation.
• Delivery of goods under the contract.
• Issue of bills by the Buyer and their avalisation by the Bank.
• Provision of avalised bills to the Supplier.
• Settlement with the Supplier for the delivered goods upon expiry of the grace period.
• Return of the bill by the Supplier.
• Providing JSC "COMINBANK" with repaid bills of exchange to close the debt to the bank.

For more detailed information, please contact Mytrofanova Natalia, Head of Documentary Operations and Trade Finance, tel. 0 800 501 200 or +38 (044) 290-79-00 (ext. 3362), mobile: (067) 525-27-32 natalia.mytrofanova@cib.com.ua.