Documentary credit

In a context of globalisation and continuous change, the risk of non-payment is ever-present in international commerce today. There are many types of rules available to you. They all have different levels of restriction and reliability for the buyer and seller.

Documentary credit, for example, is a guarantee that the issuing bank has made an agreed sum available to the seller, on behalf of the buyer, subject to fixed conditions. These conditions will be checked by the issuing bank through commercial documents required from the seller.

Documentary remittance, conversely, has the advantage of simplicity, but is not a payment guarantee and therefore assumes trust in your buyer. Because, for the exporter, it consists of entrusting his bank with commercial and financial documents, with a mandate for a bank to hand them over to the buyer against cash payment or agreement to pay at a given date.

There are many tools with which the Banca Monte Paschi Belgio can help you.