We offer you the most widely-used product to guarantee compliance with your payment commitments.
Standby letter of credit (Stand by)
What is it? Standby is a type of letter of credit issued by Bancomer on behalf of customer to guarantee compliance with their payment obligations due to financial or commercial commitments with third parties (suppliers, financial entities, etc.). Types of standby letters of credit: • •
Commercial standby: Guarantees payment on account of sale of goods or rendering of
services
Financial standby: Guarantees payment of a loan
How does it work? GENERAL SCHEMA
4 Verifies that all terms of the credit correspond to agreement with principal
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Principal
Beneficiary Notifies (and, as the case may be, confirms) the credit
Applies for issuance of credit
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Issues the credit
BBVA Bancomer
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Correspondent bank
BBVA BANCOMER, S.A. INSTITUCIÓN DE BANCA MÚLTIPLE, GRUPO FINANCIERO Banca de Empresas y Gobierno Av. Universidad 1200, Col. Xoco 03339, México, D.F.
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Why should you sign up? •
Security, by having an instrument that guarantees payment of obligations will only be made as per the conditions set forth by you
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Tranquility, by having an instrument that will facilitate the closing of commercial or financial transactions at the beginning of your relationship with the counterpart
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Service, by having specialized account managers to attend your business operations with the quality and efficiency you require
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Multinational status, by using this instrument for your domestic or international operations
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Certainty, by offering your supplier or creditor the same payment commitment by the bank
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Comfort and modernity, as you may issue and amend standby letters of credit using Bancomer.com, from any computer connected to the Internet or through our unique service of specialized network for companies
Requirements •
Having or opening a Bancomer checking account
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Having a credit line in effect and available
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If you don’t have a credit line available, providing the funds in the relevant currency, charge made to your account
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Signing an Apertura de Crédito Irrevocable para Cartas de Crédito Standby y Garantías Demandables (Bond) irrevocable credit for standby letters of credit and bonds agreement
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Completing and signing the application for a Carta de Crédito Standby o Garantía (Bond) letter of credit or bond, Exhibit “A”
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Replacing any documents that are not in effect or providing those which are not found in the customer file, such as short versions of powers of attorney, IDs, among others
BBVA BANCOMER, S.A. INSTITUCIÓN DE BANCA MÚLTIPLE, GRUPO FINANCIERO Banca de Empresas y Gobierno Av. Universidad 1200, Col. Xoco 03339, México, D.F.
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