Because it is important to know your business partners, as well as how important is the risk of the country where your company wants to operate, BBVA offers you letters of credit, thus providing a payment guarantee depending on the analysis and control of the documents agreed between the parties and offering a higher security to economic agents.
BBVA, acting on behalf and upon the customer's order, assumes, before a payee, the irrevocable commitment to pay, accept or negotiate the agreed documents, provided they are submitted in strict compliance with the terms and conditions of the letter of credit.
Why is it a credit? Because it is an irrevocable payment commitment from the issuing bank.
Why is it documentary? Because of documents that control the business transaction and that are the counterpart of the credit for banks.
It is a very complex operation and thus the conditions can change from one letter of credit to another.
Subordinated to the Uniform Customs and Practice for Documentary Credits (UCP600), issued by the International Chamber Of Commerce, Paris.
If used within the business network where Grupo BBVA is present in more than 30 countries in 4 continents, it is the most economical, efficient and safe way of protecting yourself in the event of non-compliance on the part of the importer.