The opening and processing of a documentary credit are associated with several commissions and fees:

• Opening commission
• Commission for utilization or payment
• Commission for deferred payment
• Commission for each modification
• Commission for the renewal of revolving credits
• Swift fees

Documentary credits are subject to the “Uniform Customs and Practice for Documentary Credits” (UCP600) of the International Chamber of Commerce, which provides a universal, stable, and secure framework for processing.

Types of Documentary Credits:

• Irrevocable: An irrevocable commitment to payment by MoraBanc, provided that the documents required from the supplier have been submitted to us and completed within the deadlines and conditions of the documentary credit. This type provides the supplier with the highest payment security and guarantees your company will receive the goods in good condition.
• Revocable: The credit can be canceled or modified by MoraBanc at any time without notifying the beneficiary, which offers much less security to the supplier.
• Revolving: A documentary credit that can be used on a revolving basis up to a predetermined limit until the expiration date.
• Confirmed: A documentary credit in which a third bank guarantees the fulfillment of MoraBanc’s obligations when the received documents comply with the stipulated credit conditions.
• Transferable: A documentary credit that allows the transfer of the whole or part of the documentary credit to third-party beneficiaries.
• Standby: A documentary credit, also known as a “Standby Letter of Credit,” through which the beneficiary can draw on the guaranteed amount if any of the established terms are breached.

Financing is subject to review and approval by MoraBanc.

In order for your manager to properly review the credit operation request, they will need to have the minimum required documentation.

Minimum Required Documentation for the Review of Documentary Credit:

In the case of companies with legal personality (corporations, limited liability companies, etc.):

• Balance sheet and income statement for the last fiscal year (and provisional financial statements for the current year).
• Audit report for companies required to perform one.
• They may also request the most recent Corporate Income Tax (CIT) returns, General Indirect Tax (GIT) returns, and employee CASS (Social Security) contributions to verify that the company is up to date with these tax obligations.

If necessary, the bank may also request additional information to perform an adequate economic, financial, and asset analysis of your company.