A documentary letter of credit is an irrevocable undertaking of the issuing bank to make payment to beneficiary specified in the letter of credit, against the presentation of the documents required in compliance with the terms and conditions of the letter of credit. The bank provides its customers expert and consulting services on the letters of credit.
- The letter of credit is one of the most commonly used methods of payment in both international and national trade. It is a particularly suitable method of payment between counterparties that do not know each other well;
- The letter of credit provides the buyer with the certainty that he will receive the goods and that the payment will be effected after the full compliance on behalf the seller with the conditions and terms specified in the letter of credit.
- The letter of credit provides the seller with the certainty that he will receive payment after the fulfillment of the letter of credit terms and conditions.
- The letter of credit minimizes the risk of unilateral cancellation of the business transaction;
- The letter of credit provides the seller with the certainty that he will receive payment upon presentation of documents in compliance with the letter of credit terms and conditions even in case of insolvency of the buyer.
Currency: BGN, EUR, USD
Issuance of a letter of credit. A letter of credit is issued after the final coordination with the applicant of the letter of credit terms and conditions as well as providing a collateral, acceptable for the bank.
Advising of a letter of credit: The bank advises the letters of credit received in favor of its clients, and, if necessary, provides professional consulting on the concrete business transaction.
Fees and commissions: According to the List of terms and conditions of BACB applicable for institutional customers
Other details: If the letter of credit is for the amounts up to and over the equivalent of BGN 30 000 and if the beneficiary’s bank is not in the European Economic Area, a Declaration as per ordinance No28 of the Bulgarian National Bank should be presented by the applicant.