Letters of Credit (Import & Export)
BSP offers Documentary Credit services to both the importer and the exporter.
A documentary credit is a guarantee of payment to the beneficiary (the supplier of goods or services) subject to all the terms and conditions of the documentary credit being met. Documentary credits may be payable at sight or after sight where extended terms have been agreed to.
BSP establishes the documentary credit in favour of the beneficiary (supplier) on the importer's behalf with payment or acceptance made subject to presentation of compliant documents which are then forwarded to BSP for release to the importer enabling uplift of the goods.
Click here for Import Letter of Credit Application
Click here for Import Letter of Credit Amendment
BSP will receive the documentary credit issued in the exporter's favour. Shipment of the goods occurs and documents are then presented to BSP. Subject to the documents being compliant with all the documentary credits terms and conditions payment or acceptance occurs with the documents then dispatched to the importers bank.
Click here for Lodgement Authority Export Documentary Credit
In both cases, by using BSP, there is control over the documents and therefore usually the goods and there is the additional comfort for the beneficiary of having payment or acceptance being guaranteed by a Bank.
*customers will need to have an established commercial banking relationship with BSP