Supply Chain (FSC) offers products in local currency for both working capital and liquidity and risk management, based on the active management of accounts receivable and payable. Some variations are the purchase of receivables with recourse limited to the assignor, purchase of receivables through the assignor, financing to strategic suppliers and financing to distributors. The FSC area seeks to customize each transaction so as to understand the client’s circumstances, seeking to minimize any impact on their business and operational flow relationships.

Documentary Collection is a payment method widely used for cross-border business transactions.

In practice, the documentary consignment covers the processing of a set of documents that are presented by a supplier of goods and / or services with specific instructions for collecting funds or accepting a letter from the buyer.

In a Documentary Collection, the supplier (authorizing officer) gives specific instructions to his bank to deliver the documents to the importer (drawee) against payment in cash or accepted for payment at an agreed future date.

Documentary Credit is any agreement under which an issuing bank, acting on behalf of a customer, assumes an irrevocable undertaking to make a cash payment or to pay at a future date against the presentation of stipulated documents, provided that the terms and conditions of the credit are fulfilled. It is a credit, but it is not a mere credit, it is an irrevocable commitment on the part of a bank – issuing bank (bank that issues the credit underlying the commercial transaction).

This irrevocable commitment is witnessed by the existence of a SWIFT message. And it is documentary because it is the existence of the documents that proves the commercial transaction, and that constitutes the counterpart of the credit for the financial institutions. The Documentary Credit is notified to the beneficiary through the reporting bank, a correspondent of the issuing bank. In certain situations, and in order to safeguard the beneficiary’s position against foreseeable risks, the credit may be confirmed by the bank of the exporter’s country, that is, this bank assumes jointly with the issuing bank the responsibility for the operation.

Forfaiting, discount without recourse or financing without recourse are identical designations for the same product.

This is a financing modality, usually medium / long term, associated with international trade transactions. Forfaiting has assumed an increasingly important role for exporters who wish to dispose of the funds when they have negotiable debt recognition instruments, rather than waiting for payments to be made on the future date (s) agreed with the importer.

It traditionally involves the purchase, at a discount, of the payment terms assumed for the supply of goods / services, generally through promissory notes / bills subscribed / accepted by an importer to an exporter.

Immediately pay the exporter the net value of the securities (discount rate and other possible expenses already deducted), allowing the exporter to finance the exported goods and to the Importer the future payment of the imported merchandise.