A Domestic Letter of Credit serves as a payment instrument in commercial transactions in which the applicant and the beneficiary are located in the same country. It is defined as a conditioned payment order issued by a credit institution (issuing bank) on behalf of a firm (buyer/applicant) in favor of another (seller/beneficiary), with the commitment to honor payment in favor of the latter, in exchange for the presentation of the specific documents associated with the sale of goods or provision of services and in strict compliance with the terms and conditions stipulated in the Letter of Credit.
- Firms that buy or sell goods and/or services.
- Public or private sector firms.
- Assures the seller that payment will be made as long as the necessary documents are presented on time and in the manner required, and according to what was agreed upon with the applicant.
- Offers assurance to the buyer that it will receive the merchandise according to the agreement reached.
- Offers assurance to the seller that it will receive payment for its goods or services.
- Presentation of a properly completed “Application for Issuance of Domestic Letter of Credit” (Formato F10), with the application form provided by Bancomext, or acquisition of services through “B@ncomext Trade,” an online Letters of Credit System.
- Presentation of the firm’s legal documentation required by Bancomext for proper client identification (only for the first operation).
- Compliance with credit requirements for requesting a line of credit with Bancomext for the issuance of Domestic Letters of Credit, if the amount is above 3 million US Dollars, or 100% of the operation’s value through a cash deposit (provision of funds).
- Payment of the corresponding commission.
Apply for a Letter of Credit at: email@example.com.