Import letters of credit
Protection in your operations
We provide you with more safety: your payment obligation will be executed if the vendor has met the conditions specified in the letter of credit.
Banking intermediation guarantee
The purchase and sale transaction is mediated by financial institution, which adds trustworthiness to the operation.
Adaptability to the purchase and sale contract.
Grants you the utmost legal protection.
- The import letter of credit is an obligation issued by MoraBanc, acting as your company’s proxy (the buyer) or on its own behalf, to pay your supplier the amount indicated in the received documents, provided that the deadlines and conditions specified in the aforementioned credit are met.
It enables you to confirm your creditworthiness and obtain a payment deferral from your foreign supplier.
See terms and conditions
- MoraBanc notifies (via the SWIFT messaging system) the supplier of the credit in their home country through a correspondent bank (advising bank). This bank can act as a mere advisor and can also confirm the credit if it accepts the request that we would issue from MoraBanc.
There are several types of letters of credit that can adapt to your needs.
This operational system has three main advantages for your company:
- Certainty that you will not have to ay your supplier until the letter of credit’s terms have not been met.
- Intermediation by reliable (both for the buyer and for the vendor) credit institutions.
- MoraBanc verifies the documentation and monitors the goods receipt process and all procedures so the goods arrive at their destination.
Multiple benefits for your supplier:
- Certainty that the total amount will be paid within the specified deadline.
- Convenience – they receive the payment in their own bank.
Application resolution within a maximum period of 7 days, as long as all required documents have been provided.
See required documents
Opening and processing a letter of credit has a series of associated commissions and expenses:
- Opening commission
- Payment or usage commission
- Deferred payment commission
- Commisssion for each modification
- Commission for revolving credit renewal
- SWIFT expenses
Letters of credit are subject to the International Chamber of Commerce’s “Uniform customs and practices relative to the letters of credit” (UCP600), which provides a universal, stable and safe reference framework.
Financing will be subject to assessment and approval by MoraBanc.
These are the most common letters of credit:
- Irrevocable. Irrevocable payment commitment from MoraBanc’s side, provided we have been given the documents required to the supplier within the specified deadline and according to the conditions of the Letter of credit. It ensures the utmost safety: for the supplier upon collection and for your company upon reception of the goods in good condition.
- Revocable. The credit can be cancelled or modified by MoraBanc at any time with no obligation to notify the beneficiary, hence the safety offered to the supplier is considerably lower.
- Revolving. It is a letter of credit that can be used in a revolving way up to a predetermined limit until its maturity date.
- Confirmed. A third bank guarantees MoraBanc’s obligations fulfillment, provided that the received documents are consistent with the credit conditions specifications.
- Transferable. This letter of credit allows to transfer all or part of the letter of credit to third party beneficiaries.
- Standby. Also known as “non-performing letter of credit”. The beneficiary of this document can receive the guaranteed amount if any of the specified terms are not fulfilled.
In order to correctly study your credit operation’s application, your account manager will need to be provided with a minimum required documentation.
Minimum required documentation for Letter of credit assessment
In case of companies with legal personality (public limited companies, private limited companies, etc.):
- Last tax year’s income statement and balance (and provisional financial statements from the current year).
- Accounts audit where it is mandatory for the company.
You could also be required to present the last Corporate Tax and IGI (VAT equivalent) settlements and your employees’ contributions to CASS in order to verify that the payment of those tax liabilities is up to date.
If needed, the Bank will also be able to request additional information in order to carry out a proper asset, economic and financial analysis of your company.
Besides, in this specific case, the information and documentation related to the letter of credit’s purpose will be required (goods purchase, etc.)
Write to us and we will contact you.
Information on the processing of personal data
In compliance with Law 15/2003 of 18 December on protection of personal data, the customer authorizes that the applicant’s personal data entered on this form will be incorporated into files owned and managed by MORA BANC GRUP, SA – MORA BANC, SAU (hereafter referred to as “MoraBanc”) to process the requested service and, if necessary, to comply with the contracts finally entered into, and also to ensure correct operational procedures.
The applicant expressly authorises MoraBanc to send him/her commercial and promotional communications for products and services and information on the Bank itself, social or other activities, in hardcopy by post or by electronic means (among others, short messages (SMS) to mobile phones, e-mail, etc.). This consent can always be withdrawn, without retroactive effect.
The fact of filling out this form implies that the applicant acknowledges that the information and personal data provided are true, accurate and correct; otherwise, MoraBanc declines all responsibility for the lack of truthfulness or correctness of the data.
The applicant authorises the data provided to be communicated or shared with third parties forming part of the MoraBanc business group, entities which are primarily active in the financial, insurance and service sectors. The applicant is considered as having been informed of this transfer of information by means of this clause. The applicant accepts that he/she may be sent information on any product or service marketed by these companies.
The data processing manager is MoraBanc. The applicant is hereby informed that the rights of access, rectification, suppression or opposition may be exercised in the terms established in current legislation.
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