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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.
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 Documentary 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 Documents of Credit.
- A request to open a Letter of Credit which can be obtained on the Internet.
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.
- 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
- 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 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.
Rates
- Request the information from the International Department about the rates.
Further information
To obtain further information on Letters of Credit – Private Banking, fill out
this form and one of our executives will communicate with you.
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