"Maximum security, its documentary credits at Bankia"

DESCRIPTION

Letters of credit are a method of payment which includes an outright payment commitment on the part of the issuing Bank (the importer’s bank). This commitment is subject to the payee of the credit (exporter) presenting the documents required in the letter of credit itself, i.e. complying with its commercial obligations.

The documentary credit manages documents (not merchandises), and is independent of the business relation between parts.

CHARACTERISTICS

• Trust between exporter and importer is MINIMAL, since they do not know each other.
• Security of collection is MAXIMUM.
• Collection is FAST.
• Can also be used for domestic trade.
• Advantageous for both parties (importer and exporter).