Confidence in the collection and payment of your international operations
When it comes to facilitating the collection/payment of your first transactions with a little-known counterparty, we may issue/receive a letter of credit as a way to ensure the collection/payment of your international transactions.
At Santander you can issue and manage your commercial paper through our super agile online banking service, with important new features:
- Increased decision-making capacity: banks involved, places of use, requests for related funding, etc.
- New and improved communications model so you can download all your documents (settlement letters, SWIFT transfers sent, etc.) and keep close control of all your transactions.
- We make your job easier with the option to issue and download drafts with text templates for the most common transactions and operations.
- Confirmed. When the bank receiving the documentary credit confirms it, it to undertakes and is obliged in the same manner as the issuing bank.
- Transferable. When the beneficiary instructs the bank so that one or more beneficiaries can use part or all of the credit.
- Usable. For payment on demand, against acceptance or negotiation.
- Stand-by or Contingent Letter of Credit. Used as a personal, abstract, autonomous and independent guarantee that supports the fulfilment of the contracted obligations with documents.
Procedure for opening a documentary credit:
- By means of a document, the Importer asks the Issuing Bank to open the Documentary Credit and, after the appropriate risk study, the Bank issues the Documentary Credit to the Beneficiary.
- After analysing the request, the Issuing Bank issues the documentary credit through the Notifying Bank.
- The Notifying bank informs the Beneficiary of the opening of the Documentary Credit.
- The Exporter (beneficiary) ships the goods and delivers them to the country of destination.
- The Beneficiary delivers documents to the Notifying bank.
- The Notifying Bank sends the documents received to the Issuing Bank.
- The Issuing Bank pays the Notifying Bank.
- The Issuing Bank will debit the importer's account and provide them with the documents.
- The Notifying Bank pays the Beneficiary.
- The Importer submits the documentation to customs and retrieves the goods.
We can assist you with the payments and receipts for your international trade operations through a payment method that ensures collection, in the event that you are an exporter, and enables the importer to establish the desired conditions. Thus, both buyer and seller benefit, and both are successful in the international transaction.
With either digital or branch-based management.