Types of bank and financial credits
Since we know already, the types of credits represent an instrument of payment that is subject to fiscal regulations, by means of which a bank or financial agency acting across the request and conformity of a client (adviser) must do a payment to a third person (beneficiary) against the delivery of corresponding documents any time the credit terms and conditions are fulfilled. There are great the types of credits that exist, and this allows them the same to fit more according to the type of the client whom the banking institution is granting this credit; between that we can name this one the this revocable credit allows certain modifications and cancellations in any moment and without the need to have to be provided with the assent of the exporter or beneficiary, but due to the risk to which the exporter is exhibited, the revocable credits are not of most used.
 On the contrary, other of the types of credits is called irrevocably; in this case, if some reform takes place in the credit order it is needed the assent both of the issuing bank and of the beneficiary and of the petitioner this way to realize any type of reform, or cancellation of the original terms in which the credit was extracted. Generally it is this of the types of more used credits because the payment is always a guarantee. An irrevocable credit they can be confirmed or not. In turn the same one will not be able to be revoked unilaterally and in this case it must always be provided with the conformity of the parts of that they take control.
The credits without confirming are used in the cases where the document only supports the guarantee of the issuing bank of the credit. The task of the bank is simply to inform the exporter the terms and conditions that the credit request will have, excluding his payment obligations. In this aspect it is the exporter who assumes the payment risk, and normally it is usually in a foreign country. The transferable credits and in this case it is a question of an irrevocable credit that in turn, can be transferred. The exporter has the option to transfer part of his rights to another place as the terms and conditions that are specified in the original credit, but always with certain exceptions; this way it is much more difficult to support certain flexibility and confidentiality. The transferable credits are used often in case the exporter is the exporter an intermediary between the provider and the importer.  In these types of transferable credits, the exporter makes use of the credit that was granted by the issuing bank and thus, avoids it to take to use it of its own funds to be able to acquire the goods on the part of his provider. In this sense we can say that the transferable credit is a tool of financing before to the exportation. So that the credit is transferable it is important that the transference order appears in the terms of the letter.
Anyway, it is important that before the transference is realized, is necessary that the ponga exporter in contact in writing with the in charge bank of transferring the credit, if the same one has confirmed the credit transference, will have to make effective the transference of the form in which it is specified in the credit letter. It is fundamental to bear in mind that the transferable credits possess someone specific risks; for example at the moment when a bank opens a transferable credit for a buyer, unfortunately none of these parts can be sure of to performance of the provider; in this case two parts must trust blindly in the evaluations that are obtained of the importer of his reputation and his aptitude to operate.
Credits with Support
Other of the types of credits that will offer us there are the so called endorsed credits that are two credit letters that shape a type of alternative credit.
The endorsed credit him allows to the exporters be already the sellers or intermediaries, who do not qualify for a bank credit, to obtain a recommendation credit letter in favor of the provider. The advantage that the credit letters possess is that the same ones award to two parts of a credit, an important safety grade, since it guarantees that the due conditions are fulfilled and in turn that the importer insures himself of that the goods are going to be delivered to him according to the due terms, also, offer the possibility of a financial support, any time the exporter is capable of guaranteeing his payment. The same one is carried out against the documents that make the transmission of the rights possible on the mentioned goods. It is important that it is considered that never the bank will become a person in charge for the goods that is an object of the deal; his responsibility limits itself to taking itself a control of the documents that protect this deal, and it is by it that of there are called they to the credit letters a credit documentario. |
