The objective of documentary business is successful realization of foreign trade and credit operations with foreign partners. The basic characteristic of business operations with international partners is manifested in lack of trust between parties involved. Due to the distance which separates them, they are exposed to high risk. Documentary business reduces this risk to the lowest possible level. There are:

1. Documentary collection
2. Documentary letters of credit
3. Guarantees

1. DOCUMENTARY COLLECTION
Documentary collection represents an arrangement which is concluded with the goal to ensure payment at sight or in agreed time after sight by submitting the agreed documents.
Simplicity and cost-effectiveness are advantages of this instrument. By using the nostro documentary collection in Agrobanka, the exporter arranges documentary collection. Goods are shipped and all the required documents are sent to the documentary collection bank along with the instructions. Documents are then delivered to the importer with payment. The importer uses documents which are paid for to pick up the goods. Loro documentary collection ensures payment of goods upon receipt of documents which are an indisputable proof that contract obligation was executed.  
Documentary collection is regulated by the Uniform Customs and Practice for Documentary Collection URC 522 of the ICC.

2. DOCUMENTARY LETTER OF CREDIT
Documentary payment by means of letter of credit (L/C) is the safest way to ensure payment in international business. In the process of import, if you wish to make sure that shipped goods are in accordance with the contract or pro forma invoice, before you order payment to your foreign partner, we offer you our help and best conditions for issuing of nostro letter of credit as well as expertise in checking the submitted documents. Realization of payment for export deals will be safer if a foreign bank, based on our advice and in accordance with our instructions, issues you loro L/C with conditions which would be acceptable to you.
Two basic types of L/C are irrevocable letter of credit and confirmed irrevocable letter of credit. When filling out an order for issuance of L/C, the type of L/C which is to be issued is defined. This means that it is determined whether L/C is payable at sight or it is L/C with deferred payment. Letter of credit can be revolving, negotiable, assignable, back to back, standby etc. Type of the letter of credit is determined by commercial contract, with the objective to find the most economical solution acceptable to both parties in foreign trade.
Revision of the Uniform Customs and Practice for Letters of Credit has been made by the International Chamber of Commerce this year, and as of July, 1st 2007 this type of business is regulated by UCP 600 Rev.2007.

3. GUARANTEES
On client’s demand, Agrobanka a.d. issues all types of bank guarantees for business conducted with foreign countries, by which as a guarantor it takes an independent and irrevocable obligation to pay the guaranteed amount, on request of the third party – beneficiary – if all the conditions listed in the guarantee are fulfilled.  

Foreign currency guarantees can be divided in:
1. Nostro guarantees
 Payment guarantees
- Payment guarantees (deferred payment of import)
- Credit Line Guarantees (financial, commercial, commodity)

 Facility guarantees
- Tender guarantees
- Advance payment guarantees
- Performance guarantees
- Warranty guarantees 

Documents required for issuing of guarantee
       -    Request for issuing of guarantee 
       -    Document proving the existence of formal business with foreign partner  
            (Contract, pro-forma invoice, offer...)

Guarantees are issued in accordance with ICC Uniform Rules for Demand Guarantees (URDG 458), but they are adjusted to specific requirements of the participant in business and Bank’s business policy.

2. Loro guarantees
 Bank accepts all types of guarantees from abroad on behalf of its clients and it provides following services:
- Consulting services in the process of negotiating the guarantee clause
- Forwarding (advising) of the received guarantee according to the guarantor’s bank         instructions
- Check of content of the loro guarantee forwarded through the Bank’s SWIFT
- Consulting in case of activation of the received guarantees (protest)