Documentary Credits – Export and Import

Greater security in international trade transactions

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How it works Manage operations How much is it Contacts

What is it and how does it work

Learn everything about these secure international transactions

Payment guarantee in international transactions We guarantee payment to the exporter, either at sight or at maturity, provided that the submitted documents comply with the requirements set out in the letter of credit. This instrument provides greater security in international transactions, particularly when working with new trading partners.

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Security for the importer We only pay to the exporter if all the requirements of the letter of credit are met, ensuring the importer’s control over the transaction.

Security for the exporter The exporter has a payment guarantee for the shipped goods, provided that the documents comply with the letter of credit. It is also possible to receive funds in advance after submitting the documents.

Types of contract In an import documentary credit, there is a contract between the Bank and the importer, under which the Bank commits to the agreed terms and deadlines. In an export documentary credit, there is no contract with the local Bank, as it is opened by a foreign Bank at the importer’s initiative.

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Ways to use There are three ways to use documentary credits: irrevocable credit, confirmed irrevocable credit and transferable credit Learn more

Payment methods There are five possible payment methods: at sight, credit available by acceptance, credit available by deferred payment, mixed and negotiable. Learn more

Security for the importer We only pay to the exporter if all the requirements of the letter of credit are met, ensuring the importer’s control over the transaction.

Ways to use There are three ways to use documentary credits: irrevocable credit, confirmed irrevocable credit and transferable credit Learn more

Payment methods There are five possible payment methods: at sight, credit available by acceptance, credit available by deferred payment, mixed and negotiable. Learn more

The Millennium bcp Corporate Portal enables the execution and management of documentary operations, such as letters of credit and documentary collections, in a fully digital environment.

At no additional cost, this service enables your company to:

Request the opening of import documentary credits and export documentary collections in the form of Collection, Advance or Discount
Create a template or request the creation of a provisional draft of an MT700 SWIFT message:
- Template: the operation data is saved for future use
- SWIFT MT700: Millennium bcp analyses the request and sends a draft message within a maximum of 24 hours after submission

Request changes to active or pending operations via a dedicated form
Access various documents, such as Debit/Credit Notices, Operation Issuance or Amendment Notices, Discrepancy Notices, Document Receipts, among others
Access previously created templates for import documentary credit operations
Access a set of instruction forms for Millennium bcp and generate a PDF document
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