How to Prepare a Foreign Trade Contract for the Bank

The foreign trade contract is the main document on the basis of which the bank assesses the legality of the international transaction. The contract confirms the cooperation terms between the Russian company and the foreign counterparty, determines the settlement terms, and serves as the basis for currency control. If the contract is incomplete or contains contradictions, the bank may request additional documents or suspend the payment.

1. Provide full information about the parties

The agreement should specify:

• full company names;
• registration country;
• legal addresses;
• registration and tax numbers;
• bank details of the parties.

Information must fully match the data in the invoice and other documents.

2. Provide a detailed description of the contract subject

It is insufficient to indicate general formulations such as «equipment» or «provision of services». The contract must contain a detailed description:

• goods or services;
• quantity;
• technical specifications;
• cost;
• units of measurement.

The more detailed the description, the fewer questions the bank has.

3. Define the settlement terms

Special attention should be paid to the payment section. It is recommended to specify in the contract:

• payment currency;
• payment schedules;
• fund transfer procedure;
• advance payment possibility;
• final settlement terms.

This information should correspond to the data in the invoice.

4. Fix the delivery terms

If the subject of the transaction is goods, it is necessary to define:

• delivery terms according to Incoterms;
• place of goods transfer;
• delivery schedules;
• expense allocation between parties;
• risk transfer procedure.

This helps avoid misinterpretations during transaction verification.

5. Check the consistency of all documents

Before submitting the contract to the bank, it is necessary to ensure that:

• details match;
• amounts correspond to the invoice;
• currency is the same in all documents;
• transaction subject is described identically;
• no contradictions between appendices.

Sequence and logic in document preparation significantly speed up bank verification.

What to check before submitting the contract to the bank

• All party details are correctly specified.
• The contract subject is described in detail.
• Payment terms are defined.
• Delivery terms are agreed.
• The contract corresponds to the invoice and specification.

Properly prepared foreign trade contract significantly reduces the probability of additional bank requests and helps conduct international payment without unnecessary delays.