To carry out any Foreign Trade operation that involves the acceptance of risk by Bankia, need have a Comercio Exterior Facility.

FOREIGN TRADE FACILITY

The Foreign Trade Facility is a a single risk contract of risk for the majority of foreign trade operations. This contract establishes a maximum revolving limit with a term of validity (usually 1 year) that is tacitly renewable and the types of risk operation you can contract:

a) Documentary letters of credit of import.

b) Guarantees.

c) International Confirming.

d) Import financing.

e) Export financing.

f) Purchase forward exchanges sales.

You will be interested to know:

1. The Foreign Trade Facility provides you with operational agility and reduces costs and procedures.

2. The policy is formalised only once, and it is not required to be renewed.

3. You can be Multi-Company, allowing several titleholders and Multi-Currency, allowing operations in the main currencies.

4. Once you have the necessary Foreign Trade Facility with Bankia for processing risk operations, you will be able to operate immediately, even through the Oficina Internet Empresas, up to the agreed availability limit.

 

BANKIA ONLINE BUSINESS

We are firmly committed to online banking and facilitating operations for our customers so that they can operate conveniently and agilely, controlling all their foreign trade transactions.

Services and operations available in the OIE:

a) Foreign Trade Facility:

• Consultation of conditions, balance and types of operation admitted in the Facility.
• Consult the provisions of the Foreign Trade Facility (possibility of exporting all provisions to Excel for better control and management of due dates and operations).
• Past consultations of Foreign Trade Facility provisions.

b) General Comex Operation Enquiriesx:

• Past Comex Operations.
• Enquiries filtered by operations, including their specific details.

c) Support services:

• Comex Expert Line Mailbox.
• Comex Notification configuration service.

d) International Payments:

- Future Payments Web Portal, a view of all operations for which payment is being processed through Bankia.

They are grouped by type of operation:

• Import letters of credit.
• Import documentary remittances.
• Simple import remittances.
• International Confirming.

You can consult the details of the operations and their financing.

- International Confirming:

• Sending files.
• Dossier Monitoring and Consultation.
• Viewing the offer sent to the supplier.
• Fee-paying instruction delivery (application of financing on maturity, sales Purchase application of forward exchanges).

- Documentary letters of import credit:

• Opening Application.
• Acceptance of documents (visualising documents received).
• Fee-paying instruction delivery (application financing, sales Purchase application of forward exchanges).
• Dossier consultation:
  • SWIFT Messaging (sent and received).
  • Documentation received.
  • Communication of discrepancies.
  • Settlements.

- Import remittances:

• Acceptance of documents (visualising documents received).
• Fee-paying instruction delivery (application financing, sales Purchase application of forward exchanges).
• Dossier consultation:
  • SWIFT Messaging (sent and received).
  • Documentation received.
  • Settlements.

- Transfers:

• Issue of Transfer.
• Application of financing, sales Purchase application of forward exchanges, etc.
• Transaction receipt.
• Sending of International Payment files.

- Cheques:

• Bank cheque issue.
• Application of financing, sales Purchase application of forward exchanges, etc.

e) International Charges:

- Future Charges Web Portal, a view of all export operations for which payment is managed by Bankia.

They are grouped by type of operation:

• Export letters of credit.
• Documentary export remittances.
• Simple export remittances.
• Export Reposition Remittances.
• Electronic charges.

You can consult the details of the operations and their financing.

- Documentary Export Letters of Credit.

• Dossier consultation:
  • SWIFT Messaging (sent and received).
  • Documentation submitted .
  • Settlements.

- Export collections:

• Dossier consultation:
  • SWIFT Messaging (sent and received).
  • Documentation submitted .
  • Settlements.

- Received transfer:

• Supporting Document.

f) Application bank notes.

g) Application for travellers cheques.

h) SWIFT for Corporates.

COMEX EXPERT FACILITY

Our Service of Comex Expert Fac., facilitates and expedites your foreign trade operations:

• Providing information about the available products.
• Information on how to implement an operation.
• Information on your on-going operations.
• Solving technical queries concerning business documents, specific clauses, terms and conditions of SWIFT messages, etc.

This is a completely free service that does not require any contract to be signed. You will be able to contact the technical specialists in our Comex and Guarantees Support Department directly by telephone 902 636 616 or through your mailbox in the Oficina Internet Empresas.

At Bankia we have adapted to the new needs of our companies. We therefore make it easy for our customers to act with the maximum diligence in their operations.

Our Comex Expert Fac. Oficina Internet Empresas Mailbox offers you a wide range of actions that will facilitate the procedure at any time and from anywhere.

There is a pre-established catalogue of actions with predefined messages that will expedite your applications. If you do not find what you require in this catalogue, you can always send a message that is adapted to any of your needs.

Below is a list of actions with predefined messages that you will find in our OIE and information on whether or not your electronic signature is required:

 

 

 

COMEX notifications

On the other hand, our Comex Notifications Service you provides your operations' management when learning more punctually on the more relevant facts of your international activity.

Once again we offer you a free service that does not require you to sign any contract.

The service is automatically activated when conducting international trade operations with Bankia.

Throughout this publication, when speaking of operations, we will identify some of the notifications you will receive automatically and that will help you to control your operations at all times.

You will be able to receive these communications via (choose):

• Your Oficina Internet Empresas personal mailbox (activated by default).
• SMS (you can indicate up to 3 recipient mobile phones).
• Email (up to 3 email accounts).

You can choose the notifications you wish to receive, the channel through which to receive them and even the time slot for reception.

You will be able to have all the information about your operations online.

 

Catalogue of Notifications

 

REPRESENTATIVE OFFICE IN SHANGHAI

Other SUPPORT SERVICE service offered by Bankia, outside our product catalogue, and a differentiating factor in the processing of your operations to or from CHINA and its zone of influence, is our Representative Office in Shanghai.

Our Representative Office offers constant back-up for our customers, providing information to your customers or suppliers and clearing up any doubts about the situation of the operations. In other words, promoting and facilitating our customers' business relations.

It also provides support for our customers at international trade fairs and symposiums held in China.

Before any need in this area, do not stop contacting with our Representation Branch.

You will appreciate the competitive edge your business will have with the combination of our experience and the Spanish and local staff working in our office.

Types of remittances

Clean remittance: includes only financial documents (bills of exchange, cheques, promissory notes). Your suppliers present in payment management those documents (cheques or promissory notes) that you have given them as payment for merchandise or a service, or they present bills of exchange or automatic payments charged to you.

These documents can be:

• On demand.
• Term.

Documentary remittance: includes, in addition to financial documents, business documents that usually indicate ownership of the merchandise (invoices, transport documents, etc.).

• Against payment: Bankia will only deliver the business documents to you against their payment.
• Against acceptance: Bankia will hand over the documents to you against the acceptance of the bond with deferred payment presented by your supplier.
• Against the issue of a bank guarantee.

It differs from the documentary letter of credit in that the obligation of the importer's bank (in our example BANKIA), unless the guarantee of a bond is required, does not go beyond following the instructions received from the presenter. It is a custody of documents and of the completion of the payment when they have been delivered.

As an importer you will be interested to know that:

• If the remittance is documental, the documents usually demonstrate the shipment of specific goods.
• Documents are not reviewed by the technical experts of financial institutions.
• When the financial document received in the remittance is a Corporate Bill of Exchange or Promissory Note, Bankia will arrange payment of the fiscal stamp as established under the Stamp Duty Tax.
• This means of payment allows you a margin of negotiation with your suppliers if the remittances are with deferred payment and guaranteed financial documents (a Foreign Trade Facility is required), as this allows Bankia to make them an offer of Forfaiting.
• It provides you with legal protection, as the remittances are governed by specific International Chamber of Commerce regulations (URC 522).

Operational circuit

1. The documents corresponding to the Documentary Import Remittance, financial or commercial documents with the instructions of the grantor, are received at Bankia via a messenger/courier.

2. Bankia proceeds to register the operation in accordance with the instructions received from the grantor and it contacts you to advise you of the receipt of a remittance chargeable to you.

At that point you will receive a COMEX Notification, in accordance with the parameters you have defined for advising you of this circumstance. With the details indicated in the notification, you can consult the documents received in the remittance via our Oficina Internet Empresas.

You may even be able to even accept/reject documents via the OIE and indicate its fee-paying instructions (apply Trading of forward exchanges, request financing).

After the acceptance (physical or online), you will receive a COMEX Notification advising you that your supplier has been informed of the acceptance.

3. In accordance with the instructions received from the remittance (against delivery of documents or against acceptance on maturity) payment will be made.

After payment has been made, we will once again send you a COMEX Notification so that you can inform to your supplier online.

 

TRANSFER ISSUED

The transfer is a simple means of payment based on a criterion of high confidence between the parties (importer and exporter), since it is not linked to the documentation which certifies the shipment of the merchandise or the provision of the service.

Depending on the trust the Importer has in the Exporter (or vice versa), or simply because market conditions thus demand it, we can talk about:

• Payment prior to the delivery of the goods.
• Payment subsequent to the delivery of the goods.

Of interest to you as an importer:

• Total Internet operability (Oficina Internet Empresas).
• You can send funds with value of 0, 1 and 2 days (urgent transfers vs ordinary transfers).
• You have all coverages of exchange rate (Trading of forward exchanges, options, changes of counted).
• Risk of sending an advance transfer and not receiving the merchandise.
• You can send a file with multiple international transfers via OIE or SWIFT.
• You have the possibility of requesting the financing of the file, requiring financing of imports (in euros or foreign currencies).

In the event of using this option (shipment of file with multiple transfers), at the time of processing you will receive a COMEX Notification learning more about the charge in your account of the amount of the file and the performance of the transfers included in him.

Operational circuit

1. You request Bankia to issue a transfer for the desired amount or you make a direct transfer via the OIE.

2. Bankia debits the amount in your account or initiates the financing of the imports ordered.

3. It sends a SWIFT order for payment of the amount to the indicated bank.

4. The payee's bank pays the amount to the exporter.

 

ISSUING CHEQUES IN INTERNATIONAL TRADE

The cheque is a means of payment on demand whereby as an importer you authorise an individual or institution (your supplier/payee) to withdraw funds available in your financial institution (Bankia).

The bank check is a document issued by a banking organisation of a country, at the request of its importing customer, in favour of the exporter of the operation for which the cancellation of payment is required.

As an importer you should know:

• You can issue cheques or promissory notes in any quoted currency.
• It can be the banking or chequebook type (personal cheque).
• In the event you require a bank cheque to be issued, it provides a guarantee to the receiver ensuring a balance to pay the cheque. You must take into account that fees apply to a bank cheque.
• The use of personal cheques will involve registration of a clean import remittance when the supplier manages its payment.
• Risk of loss or forgery of the cheque.

Operational circuit

1. You request Bankia to issue a cheque for the desired amount.

2. Bankia debits the amount in your account at the same time as it sends you the cheque for the indicated amount.

3. You give the exporter the cheque for the total amount due. When the exporter is in possession of the cheque they will deliver it to their bank which will administer its payment.

4. Bankia will pay the exporter's bank when presented with the cheque.

IMPORT FINANCING

The Import Financing it consists of the deferment Bankia grants you on the payment for your purchases of goods or services abroad.

This type of financing is initiated at the time of payment of the underlying operation to your supplier.

You can finance operations with deferred payment, thus achieving a further extension to the financing granted by your supplier.

Of interest to you as an importer:

• You have been granted a Comercio Exterior Facility that includes this operation.
• You can request financing both in euros and the main currencies.
• You can request financing for any international means of payment (cheques, transfers, remittances, documentary letters of credit and international confirming).
• You can use types of exchange rate coverages (Trading of forward exchanges, options) in its opening or on maturity.
• You can cancel the financing in advance or extend it up to the maximum term allowed in the Foreign Trade Facility.
• Seven days before expiry of the financing you will receive a Comex Notification informing you, so that you can organise the funds available for payment.

Operational circuit

1. When the time comes to pay for any of your imports you can order financing from Bankia:

a) Financing of your Documentary Letters of Credit:

You can request the financing for the payment of your documentary letter of credit at any time during its life, i.e. from the moment of its issue up to the time of payment of the uses of the documentary letter of credit.

• Application for financing on the opening: at the time of requesting the issue of the documentary letter of credit you can indicate in your instructions that you wish to finance the payment. At that point you can indicate the period and the currency for said financing. This application to finance the payment on maturity of each use will be registered in our Bankia dossier.
• Application for financing on reception of the documents: on confirming receipt of the documents, or at the time of acceptance of discrepancies, you can give Bankia your financing instructions, indicating the currency and period. You can give us these instructions directly in your branch or through our OIE.
• Application for financing at the time of payment: Bankia you will inform you seven days in advance via a Comex Notification of the maturity for payment of a use of your documentary letter of credit. At that point you will be able to give your financing instructions to your branch or via the OIE.

For all those operations in a currency other than the euro, Bankia will send you an email informing you of the payment and the value date and requiring you to give us your specific charging instructions. If you wish to request financing you can reply to that e-mail indicating the period and the currency.

b) Financing your Import Remittances:

• Application for financing on reception of the remittance: at the time of reception of the remittance you receive a Comex Notification advising you. With the details of the notification you can consult the documentation in our OIE and, if you wish, consent to the payment indicating the financing instructions.
• Application for financing on maturity of remittances with deferred payment and in a currency other than the euro: on maturity of remittances with deferred payment, Bankia will send you an email informing you of the payment and the value date and requiring you to give us your specific charging instructions. If you wish to request financing you should indicate the period and the currency.

c) Financing of your transfers:

• Transfer from the branch: at the time of applying for a transfer you can give your financing instructions to your Bankia manager. You should always indicate the period of the financing and the currency.
• Transfer from the OIE: you can issue a transfer directly and request financing through the Oficina Internet Empresas.

d) Financing your Cheques:

You can finance your cheques. As always, you should indicate the currency and the amount of the financing.

IMPORT FORFAITING

International Forfaiting is a financial product through which Bankia buys, at discount and without recourse, commercial credits payable in instalments held by your supplier against you and whose payment is instrumented in financial documents with deferred payment (promissory notes, bills of exchange, documentary letters of credit, invoices, promissory notes, etc.).

Of interest to you as an importer:

• Bankia's offer of Forfaiting to your suppliers allows you to negotiate better payment conditions and extend the payment periods.
• It does not require the signature of any contract on your part.
• You do not bear any cost for the operation.
• Improves your solvency image with your suppliers by offering them financing solutions.
• Your supplier avoids credit (they exchange receivable credits for credits charged in full), country and exchange rate risks.
• As they are without recourse, your supplier avoids consuming their own risk facilities with their banks.

Operational circuit

You can benefit from the financial offer Bankia can make to your suppliers to pay their operations in advance without recourse.

Bankia can help you to achieve better periods of credit for your suppliers if, at the time of the negotiation, you include the conditions of your offer of advance payment without recourse.

Ask us for information about the conditions to apply depending on the characteristics of the operation. These will be the conditions you offer your supplier, letting them know that to benefit from them all they have to do is confirm their acceptance with Bankia.

 

FORFAITING OF DOCUMENTARY LETTERS OF CREDIT ISSUED BY BANKIA

Operational circuit

1. In your import documentary letters of credit with deferred payment Bankia will offer your supplier the possibility of receiving payment when they present confirmed documents.

2. If your supplier is interested, they should inform their bank that they agree to the advance payment under the conditions offered.

3. After receiving acceptance from your supplier's bank, Bankia will issue the payment to your supplier.

4. The documentary letter of credit will follow its standard process and, on maturity of the use, Bankia will charge your account in accordance with your payment instructions or it will initiate the import financing (if you have so requested).

 

FORFAITING OF YOUR FINANCIAL DOCUMENTS GUARANTEED BY BANKIA

Operational circuit

1. Bankia will contact the drawer to offer them Forfaiting.

2. If the drawer accepts the Forfaiting, the funds will be advanced, discounting the interest and fees in accordance with the negotiated conditions.

3. On maturity, we will charge you the guaranteed amount, or we will initiate the import financing (if you have so requested).

The following payment methods are used in exporting:

1. Documentary letter of (export) credit.

2. Remittance (export).

3. Transfer (received).

4. Cheque (received).

As with any business transaction, it is very important to sign a contract firma de un contrato with your client that contains all the terms and conditions of your agreement. Take into account that, although you may choose a means of payment subject to specific International Chamber of Commerce regulations (for example, the UCP 600 for documentary letters of credit, the URC 522 for remittances, etc), you are trading with a country that has a different laws, possibly a different language, a different currency, different habits, etc.

DOCUMENTARY LETTER OF EXPORT CREDIT

The documentary letter of credit is the safest means of payment for an exporter as it guarantees that, if you comply with its terms and conditions and you present the documentation in the due time and correct form in the place required in the documentary letter of credit, the issuing bank is irrevocably committed to making payment on the agreed maturity (on demand or deferred).

You have the possibility of adding the Bankia guarantee to the guarantee of the issuing bank, indicating to your client that they request their bank to issue their credit with confirmation instructions.

After studying the risk of the operation, the credit quality of the issuing bank and the availability of its risk lines, Bankia will decide whether or not to add its confirmation, notifying its decision urgently both to you and the issuing bank, complying with the obligations imposed on it by the UCP 600.

At the time of the notification of the credit, it is important that you revise all the terms and conditions to confirm that they are those agreed and that you are able to fulfil them. Your payment guarantee depends on the agreed presentation of the documents required in the documentary letter of credit. Always bear in mind that the documentary letter of credit pays documents, not merchandise.

As an exporter you should know that:

• Due to its "irrevocable" nature it eliminates the risk of the contract being cancelled by the buyer.
• It ensures that, if you present the agreed documents, you will receive your payment on the stipulated date, thus eliminating the business risk.
• It allows you to grant financing to your client, delaying the date of payment. Bankia can buy from you in advance and without recourse your right to receive payment (forfaiting on documentary letters of export credit).
• It provides legal protection, as the loans are regulated under specific ICC international regulations (UCP600).
• It gives you peace of mind, as prior to sending the documents, they will be revised by experts at Bankia who will be able to help you avoid any discrepancies.
• If you confirm the credit, you eliminate the political or country risk.
• If contracts a Trading of forward exchanges, delete the risk of exchange rate.

Operational circuit

1. After agreeing with your supplier on the choice of documentary credit as a means of payment, you must ask your client to instruct their bank to issue said credit through Bankia (SWIFT Code: CAHMESMMXXX).

2. After receiving the documentary letter of credit at Bankia, we will register and study the operation to confirm its validity (the credit will have been received through suitable channels – authenticated SWIFT, no incoherence between the terms, etc.).

3. After verification, Bankia will notify you of the documentary letter of credit and will contact the issuing bank via SWIFT to confirm receipt of the documentary credit, giving them our reference, informing them that you have been notified of the MT700 and requiring clarification from them of the points found to be problematic.

At the time of the registration of the documentary letter of credit, you will receive a Comex Notification informing you of the reception of this operation in your favour.

4. You will be able to use the OIE to consult all the information regarding this export documentary credit: messages, uses, settlements, etc.

5. You must check that the credit reflects all the terms and conditions agreed with your client. Similarly, you must verify that you are able to fulfil all the requirements of the documentary credit and that you will be able to present the documents free of discrepancies, to obtain payment by virtue of the guarantee of the issuing bank.

6. At the moment of the reception of the documentary credit in Bankia, you can request an export pre-financing help in obtaining liquidity to carry out the exporting. In this case, you need to havea Foreign Trade Facility with this operation included.

7. If the credit requires Bankia's confirmation, our Correspondents Banking Department will study its feasibility and will notify you and the issuing bank whether it is willing to add this confirmation.

8. You must prepare, in the due time and form, all the documentation the documentary credit requires of you. At any time you can contact our COMEX Expert Line where you will receive help to resolve all your doubts and check your draft documents to minimise the risk of them containing any discrepancies.

9. At the time of the presentation, you can request a export post-financing. For this, you should have a Comercio Exterior Facility with this operation activated.

10. For export documentary credits confirmed by Bankia, or if the issuing bank is acceptable to Bankia, we can offer you financing without recourse through Forfaiting on Export Documentary Credits.

11. When you officially present the documents to Bankia, they will be checked by our experts, who will inform of the results of their revision.

• If the documents are correctly drawn up, Bankia will send them to the issuing bank, informing them via SWIFT and requiring payment, if this is on demand, or advising them that on its maturity they should pay the amount corresponding to the use of the credit.
• If the documents are not correctly drawn up, Bankia will notify you of the discrepancies detected and you will have to decide whether to modify the documentation or instruct Bankia to send it despite the discrepancies.

When it is sent you will receive a COMEX Notification informing you of the number of the Courier by which the documentation is sent.

12. When the documents reach the issuing bank, it will revise the documentation to determine if it is correct. If it does not consider it to be correct in accordance with the UCP 600, it should send Bankia a SWIFT message (within 5 working days of receiving it), notifying of the exact discrepancies detected and advising how it intends to proceed with the documentation.

According to Article 16 it must specify in the message if:

• It will keep the documents while awaiting Bankia's instructions.
• It will keep the documents while awaiting the payer's instructions.
• It will return the documentation to Bankia.
• It will act in accordance with prior instructions received from Bankia.

13. Bankia's specialists will analyse the discrepancies and, in the event of them not being in agreement, will refute them, with the aim of achieving agreement to pay on the part of the issuer.

14. Bankia will carry out the complete follow-up of the operation, ensuring that payment is received in the due time and proper form or that the SWIFT confirmation of payment on maturity is received.

15. As soon as the confirmation of payment is received, you will receive a Comex Notification informing you of the accepted amount and the date of payment.

16. On the maturity, Bankia will pay the amount received into the account of your choice, cancelling the existing financing if applicable.

You will receive a Comex Notification informing you of the deposit.

 

EXPORT REMITTANCE

When you have more trust in your clients, you will be able to choose the remittance (clean or documental) as a means of payment. You should consider the level of trust when choosing one option or another.

The export clean remittance consists of the payment management of financial documents (bills of exchange, receipts, promissory notes, cheques, etc.). Unless the goods are guaranteed, the importer's bank will not accept any payment commitment.

On this premise that the financial institution is not obliged to pay, the choice on your part of a clean remittance must be based on the trust and previous experience and knowledge you have of your client.

The documentary remittance against payment at least gives you the security that the documentation necessary to obtain the merchandise moves within the banking circuit and that said merchandise will not be delivered to the purchaser unless payment is made.

If, by virtue of the confidence you have in your client, you decide to use a documentary remittance against acceptance, deferring the payment to a term, the obligation of the receiving body will be exclusively to collect the signature of your client on the acceptance document. It will hand over the documents after fulfilling this requirement and on their maturity it will proceed to charge the buyer. If there is a balance, you will be sent funds in accordance with our instructions. If there is no balance, it will not make the charge and will not send the funds.

If you need a further guarantee, you can request documents to be handed over only against acceptance and bank guarantee. If the bank that provides the guarantee is acceptable to Bankia, we will be able to offer you financing without recourse through the Export forfaiting.

Of interest to you as an exporter:

• If the remittance is documentary against payment, the documents that inform of the ownership of the merchandise are included in the banking circuit and they will not be delivered to your client unless payment is made.
• The documents will not be revised by experts from the financial institutions and therefore no discrepancies will be formulated. Although if the buyer does not want the documents, they can refuse them.
• If the chosen payment option is a clean draft, it will mitigate the risk of default if the financial document is backed by the financial institution.
• If you have guaranteed financial documents with deferred payment, Bankia may buy them from you without recourse, depending on the credit quality of the bank and the availability its risk facilities, through Export Forfaiting.
• It provides you with legal protection, as the remittances are governed by specific International Chamber of Commerce regulations (URC 522).

Operational circuit

1. Once you have prepared the documents, you present them to your Bankia manager, together with the instructions that must be included in our remittance letter for your client's bank to comply with, the name and address of which you must also give us to avoid problems.

Bankia has a notification form, but it is not essential to use it provided all the details necessary to correctly process the remittance are indicated.

2. After delivery of the documentation and the instructions, Bankia will send you an Acknowledgement of Receipt document that will include all the conditions of the remittance. At that point you should check that all the details are correct.

3. Bankia will register the dossier in its system and will proceed to send the documents to the bank and address indicated.

At the time of the shipment of documents, will receive, for your control and follow-up, a Notification COMEX learning more about the number of courier through which the documentation has been sent.

You will be able to consult all the information regarding your export operation in the OIE: messages, uses, settlements, etc.

4. Bankia will monitor and control the operations, requesting payment of the remittance on its corresponding maturity.

As soon as acceptance of the remittance is received, you will receive a Comex Notification informing you of this acceptance.

After receiving the reimbursement, it will be paid into the account you have specified, fulfilling the instructions you may have given and cancelling the post-financing that may have existed in relation to this operation.

At the time will receive a Notification Comex learning more about the deposit.

 

TRANSFER RECEIVED

We have already indicated that a bank transfer is a simple means of payment based on a criterion of confidence between the parties (importer and exporter).

Depending on the trust the Importer has in the Exporter (or vice versa), or simply because market conditions thus demand it, we can talk about:

• Payment prior to the delivery of the goods.
• Payment subsequent to delivery of the merchandise.

As an exporter you should ensure that you deliver the merchandise to your client when you have sufficient guarantees of receiving payment. If you are not sufficiently sure of the importer, you should try and send the merchandise after receiving the funds.

If your relationship with your client is already one of trust, you should consider what risk you assume if you deliver the merchandise prior to receiving payment.

In case grant to your client a deferment in the payment, Bankia can offer you postfinance tor sale, charged to your Comercio Exterior Facility or even, study the possibility of anticipating without recourse the amount of your sale. In this case, in the operation there should be sufficient guarantees for Bankia that make it possible to successfully conclude the operation. For example, if you have contracted the Policy Master Pray of CESCE, would be able to instruct to this company to that it issues a Title of Liquidity in favour of BANKIA (without recourse Factoring of Titles CESCE).

Or, in case Bankia can classify your clients' risk, can request a line of Factoring International.

Of interest to you as an exporter:

• High level of mechanisation in the processing of operations received from abroad. If the transfer received has all the correct identifying details, payment into your account is automatic.
• You have all coverages of exchange rate (Compra sale of forward exchanges , options, etc.).
• Risk of merchandise delivery before the transfer and not receiving the funds.
• You can control the movements registered in any of its accounts in our OIE.

Operational circuit

1. You should inform your client of the correct details of the account into which the payment for your export is to be paid (Bankia SWIFT Code: CAHMESMM, IBAN of your account, etc.).

In the OIE you can print labels with your payment details: Bankia's BIC Code and your account in IBAN format to attach to your invoices.

2. Your client's bank will proceed to transfer the funds in your favour.

3. If Bankia receives the transfer with the correct details, payment into your account is automatic.

4. You will be able to check if payment is made on the date indicated by your client via the OIE.

 

CHEQUE DEPOSIT AND PROMISSORY NOTES IN INTERNATIONAL TRADE

The cheque is a means of payment on demand with which, as an exporter, you receive payment for a business transaction or a provision of services.

A promissory note is a negotiable instrument in which a party (the issuer) makes an unconditional promise in writing to pay a certain amount of money to another (the payee) in a fixed future term.

In the case of bank bonds, unlike cheques, this does not necessarily imply that they are somehow issued or guaranteed by a bank, but instead the document used is printed by the entity, including the bank account number through which payment will be made, which will facilitate the subsequent payment and provide better possibilities for discounting the document.

If you use this means of payment (cheque deposit or promissory note), you should have full trust in your client. In any case, bear in mind that a bank cheque gives greater security than a personal cheque.

The bank check is a document issued by a banking organisation of a country, at the request of its importing customer, in favour of the exporter of the operation for which the cancellation of payment is required.

As an exporter you should know:

• Bankia can clear cheques or promissory notes in any quoted currency.
• Receipt of a cheque made out to you does not guarantee payment.
• Risk of not being able to cash the cheque after the merchandise has been delivered.

Operational circuit

1. Your client/importer sends you the cheque or promissory note as a payment for your merchandise or service.

2. You order Bankia to cash this cheque or promissory note.

Payment cannot be made into your account until after the applicable retention period. If you do not have sufficient confidence in the validity of the cheque, send it as payable (Export Clean Remittance).

3. Once the retention period has expired the money will be available to you, although it is still possible that the cheque may be returned.

 

SEPA DEBIT ENTRIES

Replacing the former direct debits (receipts), SEPA Direct Debits are a system of charges and payments common to everyone in the countries associated with the Single Euro Payments Area (SEPA). They allow payments to be managed with the same ease, security and cost both within our borders and in the European market. This system is valid for any of the 33 associated countries (28 countries in the EU, plus Iceland, Liechtenstein, Norway, Switzerland and Monaco).

You initiate the operation as a supplier with the consent of your client(s), informing Bankia of said consent and the instruction to process your payment. The operations must be in euros and the account to be charged must be identified with its corresponding IBAN code.

Of interest to you as an exporter:

• Greater speed in managing payments for your sales.
• Cost savings compared to the physical presentation system.
• Specific collection date.
• Limitation to the period of return of goods, most notably in those operations with the debtor's consent. Direct issuance of receivables to collect via the Oficina Internet Empresas, without any travel and available at any time.
• SEPA Direct Debits can be sent via the OIE or SWIFT.

FINANCING WITH RECOURSE

Direct financing to your company under the protection of your Comercio Exterior Facility Pre and Post - Financing

Export Financing consists of an advance granted by Bankia in payment of your sales of goods or services abroad.

You can initiate this type of financing as soon as you close your prior sales agreement, even at the beginning of the manufacturing process.

Pre-Financing it is financing for the period between the date of the order or sales contract and the shipment of the merchandise or provision of the service.

Post-Financing or Export Advance covers the period between the merchandise shipment or service provision date and the effective payment.

As an exporter you should know:

• Pre-financing of your exports provides liquidity to purchase the items necessary for the manufacture or preparation of your goods or services.
• It allows you to cover logistics and transport costs.
• You must have been granted a Foreign Trade Facility that includes this operation.
• You can request financing both in euros and the main currencies.
• You can request financing as the payee of any international means of payment (cheques, transfers, remittances, documentary letters of credit).
• You will be able to undertake this financing using the ICO Exporter Facility conditions.
• You can use types of exchange rate coverages (Trading of forward exchanges, options, etc)
• You can cancel the financing in advance or extend it up to the maximum term allowed in the Foreign Trade Facility. The maturity of the financing should be the expected date of payment.
• Bankia does not cancel the financing automatically on the established expiry date; the system grants a margin of 30 days to reconcile the actual reception of the funds with the cancellation of the financing, thus avoiding liquidity gaps.
• Seven days before the expiry date of the financing you will receive a Comex Notification informing you.

 

CESCE EXPORT FINANCING CERTIFICATES

“CESCE Export Financing Certificates” are a means of financing through which you can increase your ability to obtain financing in anticipation of receiving differed payment for your exports, provided you have a Master Gold policy contracted with CESCE and you order a coverage certificate to be issued in favour of Bankia. The financing granted will be under preferential conditions due to the mitigator contributed.

As an exporter you should know:

• You must have been granted a Foreign Trade Facility that includes Export Financing operations.
• You must have a Master Oro policy contracted with CESCE and request via CESCE Cesnet the issuance of a Certificate, selecting the debtor and Bankia as the payee financial institution.

FINANCING WITHOUT RECOURSE

EXPORT FORFAITING

International Forfaiting is a financial product through which Bankia buys, at a discount and without recourse, those international commercial credits payable in instalments, that your exporting company (Creditor) has with an importer (Debtor), the payment of which is usually instrumented through financial documents with deferred payment (promissory notes, bills of exchange, documentary letters of credit, invoices, etc.).

As a beneficiary of this product you will improve your liquidity by receiving payment in full, without affecting your borrowing power.

You may be interested to know:

• You can access this product directly if you are a beneficiary of a documentary letter of credit confirmed by Bankia, with accepted documents or with the commitment of the issuer of to pay on maturity.
• You can also access it directly if you are a beneficiary of any means of payment guaranteed by Bankia.
• Forfaiting is also available on unconfirmed Documentary Letters of Export Credit, in which the one obliged to pay is the issuing and/or confirming financial institution. In such cases, Bankia will offer financing without recourse after studying the operation, the solvency of the entity with the obligation to pay, and the availability of its risk facilities.
• You can also benefit from Export Forfaiting if you receive a Guarantee or a Standby Letter of Credit in your favour that guarantees payment of your sales to a client.
• With this product you achieve greater flexibility in your negotiations and increase your sales capacity, as you are able to grant longer payment periods to your buyers.
• You avoid credit risk (you exchange receivable credits for cash payment), country risk and exchange rate risk.
• You improve your working capital by turning your future payment rights into liquidity (by receiving payment in advance).
• You turn debt into liquidity on your balance sheet.
• As it is without recourse, you avoid consuming your own risk facilities (freeing up limits for other operations or lowering your CIRBE).

 

CESCE FACTORING WITHOUT RECOURSE CERTIFICATES

Is a product whereby Bankia buys rights of credit that, as an exporter, hold when dealing with your clients, derived from your sales with deferredcharge, as long as are found protected in titles of liquidity CESCE.

You must have a Master Oro Insurance Policy with CESCE to cover the risk of non-payment of your invoices. In addition you have to sign a contract with Bankia for the cession without recourse.

This purchase is made without recourse for the part covered by CESCE (85% - 90%) and it is paid to you as soon as it is granted. The remaining amount (15% - 10%) will be settled when it is received from the debtor. The debtor must be private, classified by CESCE and located in the European Union (except Italy), Switzerland, the United States or Canada.

You may be interested to know:

• You can lighten the load on your balance sheet, as it is financing without recourse.
• You do not increase your CIRBE quota and thus improve your financial position.
• You do not consume risk facilities with your banks.
• You avoid the credit risk on an outstanding bill.
• You achieve liquidity on deferred charges.
• It increases your sales capacity, as the product allows you to assume a greater commercial risk with your buyers.

 

INTERNATIONAL FACTORING WITHOUT RECOURSE

Thanks to this product you can obtain financing without recourse through the cession to Bankia of the credit rights that, as an exporter, you hold with your international clients, deriving from your sales with deferred payment.

Bankia will analyse those international clients whose credit rights you wish to be paid in advance and will inform you both of the limit and the percentage of each credit it would be prepared to finance.

You may be interested to know:

• You obtain financing without recourse, thus alleviating your balance sheet.
• You improve your financial standing without increasing your CIRBE quota.
• You avoid consuming your risk facilities to obtain financing.
• You avoid the credit risk on your invoices with deferred payment.
• You increase your sales capacity as you can assume a greater commercial risk with your buyers.

Aware of the importance of exporting for improving the economy, the majority of countries offer their companies a series of official support mechanisms with the aim of improving their competitiveness and penetration in the markets.

In Spain, this support comes in the form of export financing through the provision of funds, interest rates subsidies, credit insurance payable by the state, and tax deductions that place our exporters in an advantageous position to compete in the international markets.

In Spain, the Ministry of State for Trade is responsible for promoting exports.

The sales promotion Instruments are managed by the ICEX (Instituto de Comercio Exterior - Overseas Trade Institute) and the financial instruments are managed by the ICO (Instituto de Crédito Oficial - Official Credit Institute).

For its part, as a support instrument for internationalisation, the export credit insurance payable by the state is provided and managed by CESCE (Compañía Española de Seguros de Créditos a la Exportación, S.A. - Spanish Export Credit Insurance Company).

Bankia participates actively with public institutions to support and assist companies that need long-term financing for their exports. It has many years of wide-ranging experience in these operations and will be able to advise you and manage all your projects.

If you are in any doubt, we suggest you consult our specialists at Bankia.

At Bankia, our long-term financing products are:

• Supplier Credit.
  • Pidiregas.

• Purchaser Credit.
  • FIEM Credit and Mixed Credit.
  • Commercial Credit.

You can request your operations under the conditions of the International ICO Facility (Mid- to Long-Term ICO Exporting Facility).

 

SUPPLIER CREDIT

Supplier Credit is a mid- to long-term financing structure that allows you, as an exporter, to obtain financing in exchange for the cession without recourse of your credit rights with deferred payment, deriving from your export contracts for capital goods or turnkey services or projects.

You will be the holder of the financing, although registration on the part of the importer is required in which they recognise the cession of the credit rights in favour of Bankia.

Bankia considers the Pidiregas (Proyectos de Infraestructura Diferidos en el Registro del Gasto - Deferred Infrastructure Projects in the Record of the Expenditure) as a variation of supplier credit.

Pidiregas are Mexican Government schemes for financing private investment infrastructure projects for the CFE (Federal Electricity Commission). They pay the successful bidder company or consortium the budgeted principal when the project is implemented and in operation.

You will be interested to know that:

• It allows you to access new markets while reducing the risk of the operation.
• It allows you to increase exports to countries with a reduced availability of financing for your buyers.
• It allows you to negotiate the best payment conditions with your clients.
• It eliminates credit risk (changes in payment rights for paying in full), country risk and exchange rate risk.
• Turn debt into liquidity on your balance sheet.
• As it is without recourse, it avoids consuming your own risk facilities, thus freeing up limits for other operations.
• If you need to propose an operation of this kind to Bankia, you have specialists with extensive experience at your disposal to advise and guide you to a successful outcome.

 

BUYER CREDIT

Buyer Credit is a type of mid- to long-term financing designed to finance an Export Contract for capital goods, services or turnkey projects between your company, as the exporter, and a foreign importer.

Buyer Credit is understood as an irrevocable order from the importer to Bankia to turn the deferred payments in the Export Contract into in full and firm payments in favour of the exporter, through the presentation of the financial documents.

These credits can benefit from official export support instruments if they fulfill the requirements of the official credit regulations in force in Spain. If they make use of the advantageous conditions of an official credit, the amount to be financed may not be 100%.

If you wish finance 100% of the Export contract, can complete the non financed part for a commercialCredit, that is a complementary structure to the Credit Buyer.

You will be interested to know that

• You will be paid the amount of the Export Contract on demand, in accordance with the correct presentation of the corresponding documents to Bankia.
• You will avoid default risks, both commercial and political.
• You will improve your working capital by turning your future payment rights into liquidity.
• Arrangement of a Buyer Credit does not affect your risk facilities.
• It will allow you to access new markets while reducing the risk of the operation.
• It will allow you to increase your exports to countries with reduced financing availability for your clients.
• It will improve your commercial offer with a financing proposal.

Through the FIEM Loans (Fondo para la Internacionalización de la Empresa - Fund for the Internationalisation of the Company) of the Spanish government, through the ICO (Instituto de Crédito Oficial - Official Credit Institute), provides financing to another State or Multilateral Institution in order to promote Spanish exports and favour the economic growth of developing countries.

They are characterised by long repayment periods and extremely advantageous interest rates.

• Formerly known as DAF (Development Aid Fund) Credits.
• The Fund for the Internationalisation of the Company is a fund to support and promote the internationalisation of the Spanish economy.
• There are different types of FIEM Loans (FIEM Commercial Loan; FIEM Concessional Loan) that can de differentiated by, among other features, the repayment conditions between Spain and the developing country recipient of the funds.
• Bankia will act as the payer bank for these funds, constantly interacting with the ICO during the process of paying the FIEM funds.

The Mixed Credit is the conjunction of a Buyer Credit and a Credit FIEM within self structure that it allows reaching financing for until 100% of the Export contract.

You will be interested to know that:

• You will receive payment on demand of the execution of the Export Contract once Bankia, as the payer bank, certifies the correct fulfilment of it in accordance with the documentation you present to us.
• You will avoid default risks, both commercial and political.
• You will improve your working capital by turning your possible future payment rights into liquidity.
• You will not consume your Bankia credit facilities.