An obligation on the part of the Bank (the issuing bank) to make available to the seller (the beneficiary) on behalf of the buyer (the ordering party) an agreed sum of money to be collected by means of presenting certain documents that strictly correspond to the terms and conditions stipulated in the letter of credit.
- World-wide coverage on the part of an extensive network of corresponding banks.
- Guaranteed payment to the seller, providing the corresponding documents are presented as and when required and in keeping with the terms and conditions stipulated in the letter of credit.
- Permanent advisory service.
¿How can I obtain this type of letter of credit?
- You must already be a corporate client holding a checking account as well as an approved line of credit with the Bank.
- A signed application requesting the Bank to issue the corresponding letter of credit
Advised Letters of Credit:
The advising bank has only to verify the authenticity of the corresponding letter of credit
Confirmed Letters of Credit:
The exporter´s own bank guarantees payment upon presenting the documents, providing these comply with the terms and conditions stipulated in the letter of credit.
Transferable letter of credit:
Allows the beneficiary to make credit available to a third party, either totally or partially, based on the same terms, conditions, obligations and benefits as laid out in the respective letter of credit, except for the value and price of the merchandise which may well be reduced. Should this indication be omitted, the letter of credit shall be considered as non-transferable.
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