The Documentary Credit is an international payment technique for the financial settlement of import or export activities.

We propose several types of documentary credit

- The Irrevocable Documentary Credit: The undertaking of the issuing bank cannot be cancelled or modified without the prior consent of all credit parties, notably the recipient/payee. An irrevocable documentary credit means that the commitment is a firm and irrevocable undertaking on the part of the issuing bank.

- The Confirmed Irrevocable Documentary Credit: The exporting party or vendor can request that the documentary credit issued in his favour is confirmed. This means that the notifying bank becomes the confirming bank. A confirmed irrevocable documentary credit is a double undertaking from both issuing and receiving banks.

Major Benefits

A Confirmed Irrevocable Documentary Credit is a form of insurance against the following risks

• commercial
• banking
• political
• failure to transfer

The Import Documentary Credit or Import Letter of Credit

The Import Documentary Credit or Import Letter of Credit is a payment technique whereby the Bank undertakes to settle your credit with your supplier, subject to the documents remitted to your supplier being conform with the importation documentary credit.

Main benefits

• Facilitates your importation activity;
• Provides your supplier with the assurance of being paid;
• Guarantees the delivery of your imported goods, as payment is effected between your bank and the supplier’s bank;
• Ensures you with a personalised service and follow-up from your Business Account Executive.

The Export Documentary Credit or Letter of Credit

When engaged in export activities, an export documentary credit or letter of credit guarantees the settlement by your client’s bank, provided that the goods are delivered and the required accompanying documents presented as per the agreement thereof in the export letter of credit.

Main benefits

• Control over the risk of non-payment of your exports.
• Better control over your trade operations.

The Stand-By Letter of Credit

The stand-by letter of credit is a firm and irrevocable undertaking on the part of the Bank to settle the supplier (the recipient). It acts as a guarantee for the recipient (the exporter supplying you with the goods).

Eligibility

A company operating in the international trade sector, reporting an annual turnover exceeding MUR 50 million.