Avalization of bills
PSC “Prominvestbank” performs operations for the avalization of bills issued for the processing of a monetary debt for the provided goods, performed works and rendered services, as well as for all types of bills issued for settlements with budgets, the avalization of which is stipulated by the Tax Code of Ukraine and other regulatory documents of Ukraine.
Advantages of this bank product for a Client:
- Prevention of diversion of funds from the business circulation.
- A budget calculation tool for payment of taxes and fees.
- When performing transactions with commodity bills, there is reducing cost of raising business funds, and there is a possibility of lending when it comes to deadline for bill payment.
- Cheaper credit transactions: rates for avalization are lower than the ones for a loan, the interest on the loan is charged only from the moment of actual bill payment.
- A possibility for the seller to use an avalized bill for further settlements with his counterparts or to sell it.
Aval can be provided by the Bank for the full amount of the bill or for a part of the bill amount.
Aval can be provided by the Bank at any time: when drawing up, issuing and at any other stage of the bill circulation.
A Client wishing to draw a tax anticipation bill for avalization, should provide the Bank with the following documents:
- Original bills, which are offered for avalization.
- Registry of the bills.
- The document package required by the Bank for credit operations, including the one for financial standing and collateral.
A person wishing to present commodity bills for avalization, need also to provide the Bank with the documents confirming that these bills were received in payment for the delivered products, performed works, or provided services (contracts and shipping documents, other materials) and other documents (upon the request of the Bank )
The Bank performs the avalization of bills on the basis of the avalization agreement concluded with the Client. The agreement can be concluded for a certain period of time (a general agreement on the avalization of bills) and / or the avalization of certain bills.
- The general terms of servicing that regulate interrelations between the Bank and a corporate Client with regard to all major products and services.