Export documentary credits
Assure your sales and simplify your finance
A documentary credit provides the seller with a payment certainty, prior to the dispatch of the goods, and even before starting its manufacture.
In turn, the buyer is assured that its payment obligation will only come about when the seller has provided sufficient supporting documentation evidencing the dispatch of the desired goods. The credit is, thus, a guarantee for both parties.
From a more instrumental point of view, a documentary credit can be understood as a commitment by a bank to pay upon presentation of the requested documentation, irrespective of the underlying obligation. That is to say, the bank that issues the credit (issuing bank) obliges itself to purchase the documents from the beneficiary, irrespective of the compliance with the purchase contract or rendering of services, provided that the said documents comply with the credit terms and conditions.
Also, a documentary credit is often a financing mechanism, as it can be used by the buyer to obtain a deferment of the payment without the seller increasing its risk. The seller will in turn be able to mobilise more easily the credit to which it is beneficiary, thereby obtaining funds from a third financial party.
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Advantages
Advantages for the seller: - Collection sureness, especially if confirmed
- Easier financing
- Processing handled by a Bank
- Legal protection
- Adaptability to sales contract
- Fast collection
- Control over the documents until payment is due
- Lesser order cancellation risks
- Greater business possibilities
Disadvantages:
- Costlier that other methods of payment
- The credit conditions must be strictly complied with
Furthermore, we offer you:
- Close, professional and personalised management of your documentary credits
- Immediate notification of the reception of all your documentary credits
- An efficient confirmation service for documentary credits, in the main currencies and for a large number of countries
- Immediate examination of the documents by the best professionals
- Instant payment or financing depending on the characteristics of the documentary credit
- Checked documentary credit notification service(, 2 pages, 107Kb, spanish version)
Credit confirmationConfirmation of your documentary credits by SabadellAtlántico incorporates an added guarantee to the issuing bank's guarantee, with the following advantages:
- Elimination of the commercial risk pertaining to the issuing bank's solvency
- Elimination of the sovereign risks relating to the issuing bank's country
- Easier and faster collection
- Easier financing
For SabadellAtlántico to add its confirmation to a documentary credit, the issuing bank must provide express authorisation to this effect.
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Write to us
- Guides and forms
- Publication The documentary credit and the warranty(, 80 pages, 983Kb, spanish version)
- LC Quest – Model for informing the buyer of the terms of the documentary credit to be received (DOC, 5 pages, 109 Kb)
- Document presentation under documentary credit (DOC, 1 page, 232Kb, spanish version)
Some of these documents are in format. Acrobat Reader can be used for viewing. If you do not have it installed, you can download it free of charge.