Documentary letter of credit

Would you like to protect yourself from risks (financial, commercial, political) that could occur in a commercial transaction (export/import)?

We recommend you the safest payment and guarantee instrument: DOCUMENTARY LETTER OF CREDIT

As a holder of a documentary letter of credit, you can choose:

Irrevocable letter of credit – assures protection from commercial risks

Confirmed irrevocable letter of credit – additionally, assures protection from insolvable risks of the issuing bank, as well as the country risks – political and wiring, in the case when the confirming bank is located in a different country than the country of the issuing bank. Depending on the contractual stipulations, you can choose the paid letter of credit: at site payment, differed payment, by acceptance, by negotiations.

Stand-by letter of credit
– implies a longer period for making the payment. According to the agreement, the importer’s bank is taking over the payment responsibility if the exporter can prove that the importing company did not fulfill its obligations.

Advantages for exporters:
  • Safety of payment. The letter of credit guarantees the payment of the value of the delivered goods and/or provided services; in the case you present the documents in exact accordance with the letter of credit requirements.
     
  • Financing during the pre-delivery period. It is a modality for your company to obtain financing for the commercial contracts or orders of export companies. Loans are offered for production, provision and issuing of other uncovered obligations. Financing offering is caused by issuing the export letter of credit in your favor.
     
  • Financing during the post-delivery period. It is a modality your company can obtain funds prior to receive payment of the value of the goods by negotiating bills of exchange or the presented documents presented in exact accordance with the requirements of the credit, in the case of a paid letter of differed payment or by acceptance.
     
  • Facilitates offering of commercial loans. The foreign bank guarantees the payment immediately or after the date of receiving the package of documents. The capacity of the letter of credit to guarantee future payments, allows you to offer the buyer postponing terms of payment, your goods being most competitive on the market. For example, the payment can be performed within 60 days after the bank examines the package of documents, or within 90 days since the day of issuing the transportation documents.
     
  • The irrevocable letter of credit assures protection against commercial risks.
     
  • Standards according Uniform Customs and Practice for Documentary Credit of ICC, Paris (publication nr. 600) assures a uniform processing of the letter of credit by the majority of the banks in the world.
     
  • The competence and proficiency of Mobiasbanca team guarantees comfort and readiness of business in accordance with the standards of the group Societe Generale. 
Advantages for importers:
  • Security. You are irrevocable assured that the payment to the seller will be performed only after the bank receives the documents that certify the delivery and the documents comply with the terms and conditions of the letter of credit. 
     
  • Efficient management of financial resources. The employment of the letter of credit as a short term financing product for international trade allows efficient management of circulating means of your company. Payment in advance of the delivery of the goods immobilizes the financial resources of your company. By using the letter of credit you can considerably reduce the financing needs.
     
  • Facilitates receiving of commercial loans. Mobiasbanca guarantees payment to the seller immediately or after a certain date after receiving the specified package of documents. The capacity of the letter of credit to guarantee future payments, may allow you to negotiate with the seller on the postponing terms of payment. For example, the payment can be performed within 60 days since the bank received the documents or within 90 days since the date of issuing of transportation documents. 
  • The irrevocable letter of credit assures protection against commercial risks.
     
  • Standards according Uniform Customs and Practice for Documentary Credit of ICC, Paris (publication nr. 600) assures a uniform processing of the letter of credit by the majority of the banks in the world.
     
  • The competence and proficiency of Mobiasbanca team guarantees comfort and readiness of business in accordance with the standards of the group Societe Generale.
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These international operations must comply with Standards according Uniform Customs and Practice for Documentary Credit of ICC, Paris, as well as with other domestic and external regulations.