'Advances' are the source of financing provided by the banks to the companies, to meet their short-term requirements. Advances are a credit facility by nature.

An advance can be granted directly and without a global contract to any party. Copying of contracts from the Info transaction is only possible if these were created 'standalone', without a main contract.

• If the transaction is launched in connection with a set of documents under an Export L/C, the advance is made to the presenter of the documents.
• Under an Export Collection, an advance is paid to the issuer,
• under an Import L/C, the advance is paid to the presenter,
• under an Import Collection, the advance is paid to the remitting bank or the presenter
• under a Transfer L/C, the advance can be granted to the presenter on the primary and/or secondary beneficiary side.

The fields 'Advance type', 'Type of risk' and the checkbox 'Recourse' default to meaningful values, but the user can change these manually as required. For the advance of sight documents, the advance type defaults to 'Purchase', and in the case of usance documents, the advance type defaults to 'Discounting'. For example, if an advance is processed for a confirmed Export L/C under which usance documents were presented, the fields for 'advance type' default to the values 'Discounting' and 'Export L/C documents'. The field 'Type of risk' then contains the entry 'Confirmed Export L/C', and the checkbox for 'Recourse' is checked.

If 'Forfaiting' is selected as 'advance type', then the checkbox for 'Recourse' will be empty and cannot be changed, since the possibility of a claim-back is excluded in the case of a forfaiting transaction.

If an advance is to be paid on a document set under an Export L/C, the transaction can be processed immediately after after the registration of the received documents (Receiving Documents (LETDRV)).

If prefinancing was granted to the beneficiary of the L/C under the Export L/C as part of a Packing Credit,
then the repayment of the packing credit is automatically proposed in this transaction.
The repayment amount is calculated based on the proportion of the Packing Credit in relation to the Export L/C and the document amount; several interest options are available for the repayment.

If prefinancing was granted to the beneficiary of the L/C under the Export L/C as part of a Packing Credit,
then the repayment of the packing credit is automatically proposed in this transaction.
The repayment amount is calculated based on the proportion of the Packing Credit in relation to the Export L/C and the document amount, several interest options are available for the repayment.

Advances under an Import or Export Collection can be processed using the transactions Sending documents (BOTDAV) or Advising documents (BCTDAV) as soon as the contract has been created.

To process an advance for sight documents under 'Transferred L/C', the transactions Receiving Documents from 2nd beneficiary (LTTDCK) on the secondary beneficiary side and Receiving Documents from the 1st beneficiary (BTTDCK) on the first beneficiary side must first be processed for the advance.

For usance documents, the transaction Send, Accept and Settle Documents (BTTPAY) must have been processed under 'Transferred L/C'.

If the advance transaction is created with a global contract, the available maturities are displayed in the upper grid on the panel. An additional column displays any amounts already used for a previous advance, as well as the amount currently still available for an advance. The sum total of the available and the selected amounts is proposed as the amount for the current advance.

The user can override the value in the field 'Advanced Amount' and enter the desired amount instead.
The system then automatically calculates the percentage at which the advance is granted.
Similarly, the user also has the option to enter the percentage at which the advance is to be granted and let the system calculate the amount to be advanced. It is not possible to advance more than 100%.

Calculating the discount rate:

Interest (bank discount) is calculated on the advanced amount. The discount rate is entered in the 'Interest details' panel. There are a number of entry fields available for this:

(Users can directly start this transaction by clicking the  (Launch transaction ) available in the Panel headline without having to select the relevant menu) 

When you have made your changes, click on the ( )  Save function to save all the the data entered in the transaction to the database.