Learn About the Export Documentary Credit Process

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Sunil Gupta February 14, 2024 Global Banks & Global Trade

When you’re exporting goods, you want assurance that your Buyers will meet your payment terms.

That’s where BMO’s export documentary credit solution comes in.

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Talk to a member of our Global Trade Finance team. Contact Us to learn more about Export Documentary Credit.

TRANSCRIPT

When you're exporting goods, you want assurance that your Buyers will meet your payment terms.

That’s where BMO’s export documentary credit solution comes in.

Here’s how it works:

Once you’ve reached a commercial agreement with a Buyer, they ask their bank to issue a letter of credit on your behalf and forward it to BMO.

This document guarantees they’ll meet your payment terms provided you send them the documents they need in order to import the goods.

Upon receipt, BMO verifies the authenticity and details of the letter of credit, and forwards it to you.

You then ship the goods to the Buyer, and submit the necessary documents to BMO.

BMO, in turn, forwards these documents to your Buyer’s bank, at which point they begin to process the payment.

Payment terms can be anywhere from 30 to 180 days or may be more.

To support your cash flow, you can ask BMO for early payment of a discounted amount.

Or, you can simply have BMO pay you in full once they’ve received payment from the Buyer.

An export documentary credit not only benefits you …

It offers advantages to your Buyers, too.

Talk to a member of our Global Trade Finance team to learn more.

Global Banks & Global Trade February 14, 2024

Sunil Gupta Director, Trade & Supply Chain Finance Product Treasury & Payment Solutions

Sunil has 25 years of banking experience spanning various areas including, trade finance product development, project management, technology & business transfor…

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Global Banks & Global Trade February 14, 2024

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