Checklist for your first international trade contract

      Fear of mistakes or delays in settlements is one of the main reasons that stops entrepreneurs from taking active steps. Incorrect paperwork, the wrong choice of bank or payment method can lead to fines, transaction blocks and lengthy time losses. This creates additional stress and makes one doubt their abilities.

      However, any risks can be minimized with proper preparation and timely support. Professional assistance and a clear action plan play an important role here. At Khlynov Bank we understand your concerns and help you go through the key stages of a foreign trade transaction as safely, quickly and transparently as possible.

      We have prepared a short checklist that will help you take into account all the important points when concluding your first foreign trade contract, confidently and without unnecessary worries.

      1. Determine the payment terms and currency of settlement

      Agree with your counterparty on the form of payment (prepayment, letter of credit, deferred payment) and choose the settlement currency. This stage is crucial, as it determines the payment route and the amount of fees. We recommend agreeing in advance with your partner on the possibility of settling through third parties.

      2. Choose the bank to carry out the settlements

      A foreign currency account is required to make settlements in foreign currency with overseas counterparties. If the partner is willing to work in rubles, a regular current account is sufficient.

      Important: transactions with foreign partners in rubles are also subject to currency controls.

      At Khlynov Bank you can open accounts in Russian rubles and in 11 of the most in-demand foreign currencies: Chinese yuan, Kazakhstani tenge, Turkish lira, Indian rupee, Armenian dram, Kyrgyz som, Belarusian ruble, Serbian dinar, Lao kip, Brazilian real and Thai baht.

      It is recommended to consider alternative payment options.

      3. Prepare the package of documents for making the payment

      Before conducting a foreign currency operation, you must submit documents to the bank to determine the optimal payment route and to verify the contract’s compliance with foreign exchange legislation, and, if necessary, to register the contract. Later you will need to report to the bank to confirm the fulfillment of obligations under the contract with the foreign partner: provide acceptance certificates, transport and customs documents, as well as a certificate regarding the supporting documents — the exact list depends on the type of transaction, the amount and the payment terms. A dedicated expert from Khlynov Bank will provide qualified support at all stages of document preparation. They will explain the process in detail, answer questions and help correctly complete all required forms to avoid mistakes.

      4. Execute the payments under the transaction

      After preparation is complete, proceed to settlements. Monitor the deadlines for performance by the foreign partner and do not forget to report the transaction to the bank.

      By following this checklist, you will be able to properly prepare for a foreign trade transaction and avoid unnecessary risks. And to make the process as simple as possible and to ensure you have no doubts about the correctness of the settlements, Khlynov Bank assigns a personal foreign exchange expert to each client. Regardless of the scale of your business and the volume of operations, the specialist will help choose the optimal scheme, check the documents and carry out foreign currency operations in full compliance with legal requirements.

      If you want to engage in foreign trade, submit an online application to open a foreign currency account and we will help organize settlements with foreign counterparties.