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Content ID: PR_WCS01_UCM01057341

Export Documentary Credits

Greater security in international transactions, with guaranteed payment for exports.

Banco BPI | Trade Finance Solutions | Export Documentary Credits

Banco BPI | Trade Finance Solutions | Export Documentary Credits

Framework

Documentary Credit constitutes an irrevocable commitment on the part of the issuing bank, by means of the instructions of the originator (importer), through which the bank is obliged to accept and/or pay to the beneficiary (exporter) a certain amount (value of the merchandise or service) against the submission of the documents required therein and compliance with all other terms and conditions.

As a method of payment, the Documentary Credit seeks to reconcile opposing interests of the parties to the commercial contract, i.e., to assure the exporter the receipt of the value of the merchandise sold or service rendered and to allow the importer to make sure that the payment made corresponds to the merchandise or service purchased.

Banco BPI may act as the bank notifying the export documentary credit or, at the request of the issuing bank, add its confirmation, assuming in the latter case a full commitment for the proper settlement of the transaction, regardless of the situation of the issuing bank or the country in which it is located, which allows covering the commercial, political and transfer risks the exporter may face with the supplies to foreign countries. 

Advantages

Greater security for the exporter to approach new customers and/or new markets, particularly when the latter are subject to political, economic or monetary instability, since documentary credit mitigates the risk of collection:

  • Transfer of the commercial risk of the importer to the issuing bank.
  • It guarantees the payment of the merchandise or service, provided that it complies with the terms and conditions contained in the Letter of Credit.
  • Coverage of political and transfer risks, if the documentary credit is confirmed by Banco BPI.

It allows the anticipation of export revenues through the discount of the documentary credit.

Beneficiaries

Exporting companies.

Amount

Without restrictions, although in minor transactions it should be borne in mind that minimum fees are applicable.

Term

  • Consumer and intermediate goods (short-term): up to 1 year;
  • Equipment goods and services (medium-term): can be extended.


For more information, please go to any BPI Branch or Corporate Centre or contact us. 

Observations

This information is provided for advertising purposes and does not constitute a contractual offer; you must read the pre-contractual and contractual information required by law.

Contracting subject to prior approval by the entities involved and subject to the conditions defined according to the risk profile of each operation.

Banco BPI, S.A., Rua Tenente Valadim, 284, Porto, Tied Insurance Intermediary no. 207232431 (registered with the Insurance and Pension Funds Supervision Authority on 31-10-2017 - more details on the registration available at www.asf.com.pt); authorised to carry on insurance business in the Life and Non-Life Branches with the insurers BPI Vida e Pensões - Companhia de Seguros Vida, S.A., Companhia de Seguros Allianz Portugal, S.A. and COSEC - Companhia de Seguro de Créditos, S.A. Banco BPI, S.A. is not authorised to receive premiums or enter into contracts on behalf of COSEC, Allianz or BPI Vida e Pensões and, as an insurance intermediary, assumes no responsibility for the coverage of risks inherent in the insurance contract.