More security in International Trade transactions
This is a written undertaking that is irrevocable between the bank and the client, for the payment to the supplier of goods or services, by presenting a set of previously stipulated documents evidencing the shipment of goods or the provision of services within a given deadline.
- Application for credit opening, completed by the client;
- Pro-forma invoice issued by the supplier;
- Proof of guarantees formalization;
- Commitment letter for submission of Single Document (DU).
- SWIFT message (MT700) received from the issuing bank of the letter of credit abroad;
Real or personal, depending on the case-by-case analysis of the limits or operation.
To apply for your letter of credit visit a Millennium bim branch.
Financial costs in the execution of the documentary credit , have their commissions published in the Bank’s Schedule of Charges and focus on:
- Opening, transfer, extension, increase of value, change and negotiation commission;
- Office expenses.
Methods of use
Once it is issued, the Bank makes a definitive commitment to the beneficiary to make the agreed payment under the terms and conditions stipulated in the credit. Conditions may only be changed and the credit can be cancelled if the parties agree.
The Intermediate Bank does not attach its confirmation to the credit, so there is no commitment from their part to pay, accept or negotiate. In these cases, the Intermediary Bank shall act as a notifier of the irrevocable payment commitment of the issuing bank.
Although irrevocability endorses the credit of a firm payment commitment from the issuing Bank, beneficiaries sometimes wish to hold an additional guarantee from a Bank in their own country. This guarantee is materialised by confirming the credit.
Credit which specifically indicates that it is transferable and may be wholly or partly usable by another beneficiary (second beneficiary) at the request of the first beneficiary. A transferable credit at the time of transfer shall accurately reflect the terms and conditions of the originating credit, including confirmation, where appropriate, except for the following aspects subject to change.