Letter of Credit
Import LC
Payment method by which the importer’s bank (correspondent) irrevocably commits to pay an exporter for the goods exported, as long as they have complied with the terms and conditions of the Letter of Credit.
Requirements: Be an account holder of Banco Shinhan Mexico
Benefits:
- Wide network of correspondent banks
- Competitive commissions
Commissions: Please contact our Foreign Trade Area
Our Foreign Trade advisors will provide personalized advice at the telephone numbers 55 6722 8022 or 55 6722 8033.
Export LC
Payment method by which the importer’s bank (correspondent) irrevocably commits to pay an exporter for exported goods, as long as the terms and conditions of the letter of credit have been met.
Requirements: Be an account holder of Banco Shinhan Mexico
Benefits:
- Wide network of correspondent banks
- Competitive commissions
Commissions: Please contact our Foreign Trade Area
Our Foreign Trade advisors will provide personalized advice at the telephone numbers 55 6722 8022 or 55 6722 8033.
Documentary Collection
An instrument through which banks manage the collection of commercial documents resulting from a transaction of buying and selling goods in international trade. It minimizes the risk of premature release of goods. This is an excellent alternative when the business relationship with your trading partners involves a certain degree of trust, it also significantly reduces banking expenses and commissions.
Requirements: Be an account holder of Banco Shinhan Mexico
Benefits:
- Wide network of correspondent banks
- Competitive commissions
- The buyer will not be able to take the merchandise until they make the payment or accept the bill of exchange.
Commissions: Please contact our Foreign Trade Area
Our Foreign Trade advisors will provide personalized advice at the telephone numbers 55 6722 8022 or 55 6722 8033.
Guarantee
Financial instrument to guarantee the fulfillment of obligations in international operations.
Requirements: Be an account holder of Banco Shinhan Mexico
Benefits:
- Provide certainty to the beneficiary by offering a bank guarantee that supports the fulfillment of their obligations
- Wide network of correspondent banks
- Competitive commissions
Commissions: Please contact our Foreign Trade Area
Our Foreign Trade advisors will provide personalized advice at the telephone numbers 55 6722 8022 or 55 6722 8033.
Frequently Asked Questions
What is a Letter of Credit and what is its purpose?
- It is a conditional payment order that a bank receives to pay a beneficiary (seller) on behalf and by order of an issuer (buyer) through a correspondent bank, against the presentation of certain shipping documents or delivery of services.
- Its purpose is to facilitate external and internal trade, eliminating the distrust and risk that may exist between buyer and seller.
What are the modalities of Letters of Credit?
- Export
- Import
- Standby/ Guarantees on First Demand
- Documentary collections.
Who is it for?
- Mexican exporting companies.
- Mexican importing companies.
- Companies buying or selling goods and/or services.
What is the cost of Letters of Credit?
Costs vary depending on the operations and modality.
What is a Stand-by Letter of Credit?
- It is a form of Letter of Credit that is used as a guarantee and is used in case of commercial, financial or service obligation breach.
- They are usually negotiable on demand with a “Letter of Default” issued by the beneficiary.
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Contact
Av. P.º de la Reforma 250, Juárez, Cuauhtémoc, 06600 Ciudad de México, CDMX
Contact Shinhan: (55) 6722-8000
Inquiry Condusef: 800 999 8080 y 55 53400999
