Documentary credits for global risk management

Geopolitical shifts, trade disputes, and health crises have shown that operating internationally involves managing complex risks. For companies, the key lies in anticipating challenges and relying on solutions that ensure continuity and resilience.

Global volatility demands strategic decision-making

Each new global event—from diplomatic tensions to supply chain disruptions or sudden tariff changes—highlights how vulnerable the global flow of goods, services, and capital is to factors beyond companies' control.

In this environment, having effective financial tools is no longer optional—it’s essential. Companies operating in international markets must anticipate uncertainty and protect their operations. Solutions such as documentary credits have become key instruments to guarantee security, trust, and predictability in every transaction.

What is a documentary credit?

A documentary credit (or letter of credit) is a payment mechanism that brings a financial institution—such as BBVA—into the transaction as an intermediary and guarantor. Its purpose is to ensure that:

• The exporter receives payment if they meet the agreed terms.


• The importer only pays if all contractual conditions are verified.

How does a documentary credit work?

This tool transforms a commercial agreement into a structured and verifiable banking commitment:

• Terms defined: Buyer and seller agree on conditions (products, deadlines, documentation).


• Credit issued: The buyer’s bank commits to payment under those terms.


• Fulfillment: The exporter ships the goods and submits the required documents.


• Verification and payment: The bank reviews the documents. If all conditions are met, payment is made. In case of discrepancies, the parties are notified for resolution.

This process provides security, traceability, and transparency—minimizing risk for both parties.

Benefits of documentary credits for your business

Documentary credits provide structure, control, and visibility at every stage of the transaction.

• For the exporter: Ensures payment regardless of country risk or the buyer’s local conditions.


• For the importer: Guarantees that payment is only made if all contract terms are fulfilled.

Efficient Management and Expert Support with BBVA CIB

With BBVA Corporate & Investment Banking, managing a documentary credit is a streamlined and secure process. Our clients benefit from:

• Specialized advice tailored to each industry and market.


• International presence with coverage in major global trade hubs.


• Digital platforms that allow real-time tracking of operations.

We work alongside you to help you operate with efficiency, confidence, and a global outlook.

Protect your business. Stay ahead of risk. Talk to your BBVA CIB specialist.