Payment Guarantee

Payment Guarantee

Do not you have in-depth knowledge of the habits and practices of a potential international business partner? Can country risk be relevant? A Documentary Credit provides you with a payment guarantee based on the documentary evidence agreed between the parties.

It is Credit because 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, it is documentary because it is the existence of the documents proving the commercial transaction, and that constitutes the counterpart of the credit for financial institutions.


For the exporter

It allows to obtain a guarantee of payment independent of the object of the transaction, of the value of the supply, provided that all the terms and conditions of the Letter of Credit (Documentary Credit) are fulfilled.

The assessment of the intervening entities (in particular the issuing bank) as well as the issuing of the Letter of Credit is of particular importance.

  • Allows to obtain financing or grant:
  • Sal will advise on the obligation of the issuing bank (confirmation);
  • The surrounding banks act in accordance with the rules and international uniform uses of the International Chamber of Commerce.


For the importer

Their requirements in terms of the conditions of dispatch and formalization of documents form an integral part of the credit. Only after verification of the conformity of the requested documentation (which relates to the dispatch and characteristics of the goods) will the exporter be reimbursed, immediately or at an agreed future date, according to the stipulated payment terms.

  • Allows you to avoid prepayment in advance
  • Allows for financing
  • The surrounding banks act in accordance with the international uniform rules and practices of the International Chamber of Commerce.