DOCUMENTARY CREDIT

The Documentary Credit Service is a method of payment by means of which one can cover the purchase of good and services. In this type of service, the bank acts on behalf of the purchaser, guaranteeing the seller the payment of a sum of money in an established period in the commercial operation, against the reception of shipping or service documents, which comply with the terms and conditions established by the buyer.

Modes

  • On Demand: When the shipping documents, as well as any other document
    requested by the importer, have been presented. The confirming bank
    pays immediately, provided the documents comply with the terms of
    the credit.

  • On terms: Against the delivery of shipping documents which the exporter
    sends to the bank, the bank delivers a document which obliges the payment
    of the value of the letter of credit in a pre-determined period, provided the
    documents comply with the credit terms.

  • Stand-By: At the request of the purchaser, the bank guarantees compliance
    of obligations contracted by the purchaser to the favor of a beneficiary. In
    case of non-compliance, the payment will be made upon the presentation of
    the documents required by the purchaser. This mode is more versatile and
    can guarantee any type of transaction such as a purchase or sale of products
    and services. In addition, it can guarantee several transactions in a determined period with less costs in relation to the letters of credit and exportation and importation.

Benefits

  • Our operations are carried using the SWIFT system.

  • Flexibility, for its great diversity of types of commercial operations
    and services, as much local as international.

  • Additional financing that BICSA offers if such is necessary for the
    specific operation, which allows your company to minimize cash flow.

  • Peace of mind, because of the guarantee that the participation of
    BICSA lends to the transaction.

  • The Letter of Credit gives a guarantee to the seller, because a bank is involved in the commercial operation.

  • This is a completely flexible instrument, which adapts itself to the conditions of the commercial operation or services.

Requirements

  • A qualified credit line in order to open Letters of Credit.

  • A request to open a Letter of Credit which can be obtained on the Internet.

  • To request International if it is complete and if it can provide a copy
    of the requesting form.

Further information

To obtain further information on Documentary Credit – Corporate Banking, write us at this email and one of our executives will communicate with you.

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