The export documentary credit


One of the main concerns facing exporters is how to eliminate commercial risk. In other words, how can they be certain they will effectively be paid for a sales operation carried out abroad.

A documentary credit or letter of credit is a method of payment that irrevocably guarantees collection of said payment, provided the requirements set out in the terms and conditions are fulfilled with regard to format and timeframe.

As with all Foreign Trade operations, the letter of credit is issued through the SWIFT platform, which is an international banking interconnection system that guarantees total security in transactions.