Export Letter of Credit

Advantages

Payment is guaranteed upon Beneficiary’s presentation of complying documents
Timeframe compliant with the agreed contractual terms
In case of a confirmed L/C the customer (Beneficiary under a Letter of Credit) has double assurance for payment – that of the Issuing bank and the one of UniCredit Bulbank AD acting as Confirming bank

Whom is it Suitable for?

Suppliers/Exporters of goods and/or services abroad or in the country
Exporters trading with new clients, operating at unknown markets or markets with high risk profile

How Does it Work?

UniCredit Bulbank, acting as an Advising bank, receives a Letter of Credit and advises the Beneficiary of the receipt of an authentic Documentary Letter of Credit in its favor.
The beneficiary ships the goods subject to the Letter of Credit and presents the documents to UniCredit Bulbank. UCB checks and forwards the documents to the Issuing bank. Upon receipt of documents, the Issuing Bank examines them for compliance with LC conditions and if they comply, effects payment towards UCB or undertakes to effect payment at maturity.
If the Letter of Credit is issued with instructions to be confirmed and upon Beneficiary’s request, UCB may add its confirmation and so undertaking an irrevocable obligation towards the Beneficiary to effect payment upon Beneficiary’s complying presentation at its counters. Whenever UCB confirms a Letter of Credit its undertaking to the customer – the Beneficiary under the LC is separate from and in addition to the Issuing bank’s undertaking.

Frequently Asked Questions

How can the Export Letter of credit limit the risk when selling goods abroad?

Regardless of the creditworthiness of the importer, upon presentation of complying documents payment will be executed.

Is it possible to amend or revoke an export Letter of credit without prior consent of the Beneficiary?

No.

What kind of export Letter of credit gives the best protection to the exporter?

The confirmed letter of credit contains double insurance for the payment - of the issuing bank and of UniCredit Bulbank as a confirming bank.

Is it possible to use the export Letter of credit as a payment instrument when the goods that are exported / sold are supplied by a third party?

Yes, when the export Letter of credit is received as transferable, UniCredit Bulbank may be asked for its transfer in favor of the final supplier as second Beneficiary.

Is it possible to use export Letters of credit for domestic sales?

Yes.

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Bulbank Online Trade Finance Module

Trade Finance module as a part of Bulbank Online is a new functionality for accepting corporate clients’ orders and processing trade finance deals.

The new platform has been developed to ease and speed up the communication, processing and access to real-time information regarding bank guarantees, Letters of credit and Documentary collections by using the advantages of the online tool.

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