What types of letters of credit are there?

The variants arise from the following aspects: If a confirming entity exists or not: in confirmed credits there is a dual guarantee: the commitment of the issuing bank and the additional guarantee of the confirming bank. Whether the letter of credit is transferable or not.

What happens if a document is missing or something is not as I expected?

If you are an importer , the bank will review the documentation and inform you of the variation; if you accept it, the payment will be made. If you are an exporter , the bank will review the documentation and inform you of the variation; if you accept it, the collection will be processed.

What conditions do I have to satisfy?

To issue a letter of credit, you must have an account with BBVA and receive approval from the bank. However, to collect using a letter of credit, the above is not necessary.

Letters of Credit

Make sure that the conditions are satisfied.
Benefit from BBVA's international presence.
Count on our experience and specialization.

It's safer, whether you are an exporter or an importer

Advantages for the exporter

If you make a sale using a letter of credit, you are guaranteed to collect on the invoice if you comply with the conditions and terms specified.
Advantages for the importer

When you make a purchase using a letter of credit, you are making sure that the conditions and timelines you have agreed to and that are contained in the documentation are satisfied.

How it works

01. Negotiation and agreement

The buyer and seller negotiate to reach an agreement and establish clauses for the transaction.
02. Opening

The letter of credit is opened, including the terms and conditions agreed in the documentation.
03. Processing and tracking

The buyer's and seller's banks act as intermediaries: they process the documents and review them to identify possible discrepancies (differences from the agreed terms).

You will know how the transaction is going

You can follow up online

If you set up notifications, you will receive alerts so you can stay informed at all times. Plus, with online banking for businesses, it's possible to upload documentation or, even, request opening of a letter of credit.

How much a letter of credit costs

The price is customized

When you are going to take out a letter of credit to carry out an international transaction, an adviser will analyze your case and your needs and will offer you a price.

BBVA is present in the world's major markets.

A personal adviser at your side

Specialists to answer your questions

Our team of specialists in trade finance will make your international transactions easier. Your adviser will help whenever you have questions on financing imports.
Count on our experience
You will have a specialized personal adviser at your disposal. You can rely on your adviser to answer questions about your international activity and thus minimize any potential risks.

No added cost.

Get the information when you need it.

Request information

Are you interested?

You can request more information on letters of credit by sending in a form, and we will contact you as soon as possible.

Request information

Some questions that may come up

Other products that might be of interest to you

A credit limit to finance payments to your international suppliers.

More information
A credit limit to get an advance on your invoices to international customers. The difference with factoring is that the bank does not cover the risk of insolvency.

More information