Foreign Trade

Foreign Trade
  • Do you want to open out to the world?

We'll be by your side, even if you're on the other side of the world

 

      • Count on the best to go the farthest. In disposition, experience, service and catalogue.
      • We'll help you break down borders by offering you operational and financial support.
      • We'll make international trade as easy as doing business at home.

Bankia Go >Export

  • 1. Introduction

    Spanish companies have become protagonists in international business,
    actively participating in the worldwide flow of trade.

    This participation offers a new way to improve your balance sheet and reactivate
    the national economy. Foreign trade has become one of the major
    economic driving forces, necessary and vital in day-to-day business and serving to define
    positions and relations in the world.

    Buying abroad lowers costs and leads to more competitive products.

    Selling abroad opens up markets and possibilities, providing an escape route,
    a solution in the event of a downturn in domestic sales and a new raison d'être for
    Spanish firms, which are becoming increasingly international by conviction and not out of necessity.

    Our intention with this publication is, on the one hand, to facilitate your internationalisation process
    by offering you our extensive catalogue of products
    and financial solutions and, on the other hand, placing at your disposal our service and active cooperation
    in the aforementioned process.

    The first criterion we can use to decide how to approach your specific
    challenge is to identify your position in the international market:

    • If a company purchases from outside the national market, it is an importer.
    • If a company sells outside the national market, it is an exporter.

    Internationalisation, in the sense of opening up to new markets,
    is different for every company and corresponds to you needs. It can be said that
    there is no common standard process, although there is a similar pattern in terms of the
    difficulties that need to be faced up to.

    Bankia offers companies all the services they need to reduce
    the operational risks, agents, of change, etc. and it has a broad catalogue
    of products and all its operational experience, the result of many years of working in overseas
    trade.

     

  • 2. Information and control services provided by Bankia

    We accompany you throughout your internationalisation process, providing you
    with solutions to help you develop your international activity without incident.

    For example, to help you minimise the latent risk in the reception of merchandise in
    time and form, we can advise you on the choice of the means of payment most suitable for your
    needs and what you have agreed with your customer.

    We have all the necessary tools to make your work easier and have your
    operations under control at all times.

    We also have products that offer you full operational agility and allow you to
    process your applications directly, up to the limit of your classification, via our
    Oficina Internet Empresas.

    • 2.1. Availability and operational agility

      To carry out any Foreign Trade operation that involves the acceptance of risk by Bankia, need to 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) Forex insurance.

       

      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.

       

      OFICINA INTERNET EMPRESAS (OIE)

      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.
      • Delivery of payment instructions (application for financing on maturity, application for Forex insurance).

      - Documentary letters of import credit:

      • Opening Application.
      • Acceptance of documents (visualising documents received).
      • Delivery of payment instructions (application for financing, application for Forex insurance).
      • Dossier consultation:
        • SWIFT Messaging (sent and received).
        • Documentation received.
        • Communication of discrepancies.
        • Settlements.

      - Import remittances:

      • Acceptance of documents (visualising documents received).
      • Delivery of payment instructions (application for financing, application for Forex insurance).
      • Dossier consultation:
        • SWIFT Messaging (sent and received).
        • Documentation received.
        • Settlements.

      - Transfers:

      • Issue of Transfer.
      • Application for financing, application for Forex insurance, etc.
      • Transaction receipt.
      • Sending of International Payment files.

      - Cheques:

      • Bank cheque issue.
      • Application for financing, application for Forex insurance, 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.

    • 2.2. Free of information and control services

      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 most 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

       

    • 2.3. Bankia support service in the main emerging area

      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 Depiction 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.

    • 2.4. Bankia products that give you control over the exchange rate risk

      At Bankia we have products that allow you to minimise any exchange rate risk to be assumed when your foreign operations have to be carried out in a currency other than the EURO or a currency other than those you have in your treasury to meet such payments and may therefore be subject to a variation in rate.

      You can contract all types of exchange rate coverages that guarantee the final price to be paid or received on maturity of the operation.

       

      FOREX INSURANCE AND SPOT RATES

      The Forex insurance This is the Bankia product that guarantees you a certain price in currency trading operations, thus eliminating currency exchange rate risks from a commercial operation.

      The contracting of a Cash is made to apply to operations that are settled within zero, one or two value (business) days from their contracting.

      You will be interested to know that:

      • With these products, you will know in advance the price at which you will be able to sell or buy the currency on maturity of the operation.
      • A Forex insurance is a purchase agreement for currencies whose delivery will take place on a date later than two market business days, a spot is a currency contract for operations with a value of 0, 1 or 2 business days.
      • You can take out insurance for any term and amount and to apply it to any means of international charge/payment.
      • It is a very flexible product that allows partial or total advances and extensions.
      • Seven days before the maturity of the Forex insurance, you will receive a Comex Notification to advise you of said maturity and that you have possibility of applying it to your operations or to request an extension, advance, etc.
      • At the time of the maturity of the operation, the currency rate of exchange may be more favourable than that contracted.
      • In the event of non-compliance (failure to apply a charge/payment operation) of the Forex insurance, a settlement will be made charging/paying into your account the difference between the contracted price and the price of the currency on the day of non-compliance, in addition to the non-compliance fee.
      • The Exchange insurances are MiFID products classified as complex. As such, their purchase may not be appropriate for all customers.

      Operational circuit

      1. In order to be able to contract a Forex insurance you must already have a Foreign Trade Facility that includes this type of operation or a Derivatives Facility.

      2. You must ask your Bankia manager to take out the insurance for you, indicating the amount, maturity and purpose of the Forex insurance (Import/Export; purchase=export operations, sale=import operations).

      3. Your manager will inform you of the price and if you are in agreement, will formalise the contract.

      4. You should advise your manager to which operation you wish to apply the insurance so that it is perfectly linked and on maturity the operation is settled at the contracted exchange rate.

       

      EXCHANGE RATE DERIVATIVES

      The Exchange Rate Derivatives are alternatives to Forex insurance as they are customised products designed by our specialists in Bankia according to your needs.

      You may be interested to know:

      A product designed especially for you, although there is a minimum amount and term requirement.

      • Tunnel: secures hedging ceilings and floors.
      • Cancellable tunnel: more favourable tunnel range, however, if cash reaches the established barrier, the coverage disappears.
      • Forward Plus: it ensures you the change without giving up to settle at a price of market if upon maturity of the structure the price is more favourable. Only if it reaches at some point the barrier level set, the insured exchange rate becomes mandatory.
      • Range Reset Forward: it ensures you a change to an improved level with respect to the Exchange insurance of market and a range of fluctuation is established that, of damaging at some point before the maturity, would deactivate the Exchange insurance in force to go off below another with another price.
      • Accumulator: a more favourable strike price is set than the market rate and a series of periodical observations until the maturity of the strategy. Partial purchases/sales of a currency are accumulated at the aforementioned level but, if at some point up to the maturity of the coverage a specific previously established level is reached, the structure will disappear, although the amount accumulated to date would be maintained.

      For Structured Products you need to have a Derivatives Facility.

      If you are interested, contact your manager at Bankia and explain to them what you need so that our specialists can design the best option for you. We are specialists.

      Exchange Rate Derivatives are classified as complex investment products. For this reason, they may not be suitable for all clients as they can involve losses.

  • 3. The needs of an importing company

    As a starting point, in our introduction we agreed to establish your position in the international market as a discriminatory criterion for approaching your needs.

    Regardless of whether your company is importing or exporting, you will have to tackle its internationalisation with the aim of developing your activity with the least number of possible incidences.

    If you go abroad to purchase, you may find yourself dealing with a country whose laws, language, currency, habits, etc. you are unfamiliar with.

    Logically you have to face up to:

    • A certain insecurity:
      • In terms of the proper time and form for receiving the merchandise.
      • In terms of the price to be paid, depending on currency fluctuations.
      • In terms of the periods, shipments, quality, etc.
    • Financing problems.
    • Negotiating problems.

    Bankia can work with you to help solve any problem you may encounter.

    • 3.1. Business Risk Control: The correct means of payment choice

      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 to indicate payment instructions (apply Forex insurance, 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 at your disposal all the exchange rate coverages (Forex insurance, options, spot rates).
      • 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.

  • 4. International guarantees

    A guarantee is a bank's commitment towards a third party, which guarantees the performance of an obligation or commitment contracted by a client of the issuing entity.

    In your international business relations, your suppliers may require you to issue a guarantee that ensures payment, for example, for your purchases, for services received, etc.

    A guarantee is a flexible product that can be adapted to any object or guarantee (merchandise payment, fulfilment of a service or a contract, refund of an advance payment, etc.).

    If you are an importer you can also benefit from its advantages. For example, you can request your suppliers to issue in your favour a guarantee that returns those advance payments they have required of you and that, in the event of a failure to comply, you can demand to be refunded.

    If you are an exporter you will need to resort to this product if, for example, you bid for tender abroad for which a Bid Bond or Tender Bond type of guarantee is required. If you are finally awarded the contract, you may be required to provide a Performance Bond.

    International guarantees are not, therefore, an exclusive product for importers or exporters, but a product which adapts to any need, the payee of the guarantee being offered the security that the issuing bank will answer for its execution. Therefore, it is important to study the guarantee received: text, object, legislation, etc., including as a fundamental part in this study the solvency of the issuing bank.

    Of interest to you regarding guarantees:

    1. Bankia can give you extensive, expert advice to facilitate your operations.

    2. The regulations of a country often require that a guarantee be issued by a local bank that, in turn, will require the counter-guarantee of a first-tier bank in the applicant's country. Bankia has an extensive network of correspondents, which allows us to offer our clients a broad coverage.

    3. Maximum operational agility in processing the operations.

    4. Bankia has standard templates for international guarantees, allowing for maximum operational agility. Texts of guarantees that do not correspond to these models will be validated by our Legal Assessors.

    5. International guarantees may be regulated under different International Chamber of Commerce rules:

    • URDG758: Uniform Rules Regarding First Demand Guarantees.

    For Stand by:

    • ISP98: International Standby Practice.
    • UCP 600: Uniform Customs and Practice for Documentary Credits.

    6. Through our Expert Line Mailbox in the OIE you can pose any question or request any action regarding your international guarantees.

    With regard to Issued Guaranties:

    7. To order Bankia to issue guarantees you must have Comercio Exterior Facility.

    8. Via our OIE you have access to the documentary dossier of each international guarantee you have ordered to be issued and can access the main details of the guarantee and even consult the message sent.

    9. At the time the requested guarantee is issued, you will receive a Comex Notification Informing you of the issue.

    With regard to Guarantees Received:

    10. To receive guarantees in your favour it is not necessary for you to have a Foreign Trade Facility.

     

    TYPES OF GUARANTEES

    A. For the commitment acquired

    • First Demand Guarantees and Standby Letter of Credit (SLOC): are the most common. The payee can execute the guarantee certifying non-compliance of it independently of the sales contract and without the need to present any proof. It is possible that the text of the guarantee determines that this certificate must be accompanied by a specific document of some type, although it is not necessary to prove that the contract has been breached.
    • Contractual guarantees: guarantees of the fulfilment of certain obligations that must be agreed in the purchase and sale agreement between the exporter and importer, and will be executed at the time it is breached upon submission of proof at the paying bank . This type of guarantee is not very common in international trade due to the complexity of its execution.

    B. For the object

    For Exporters:

    • Bid Guarantee (or Bid Bond): this type of guarantee is necessary for international tenders, which is why they are usually requested by companies that are participating in international projects exporting their services or goods. It guarantees the obligation to fulfil the conditions of the tender and that the bidding company will be able to undertake the work or service in the event that it is awarded.
    • Advance Payment Guarantee: this type of guarantee is requested by exporting companies that receive an advance payment. It guarantees the obligation of returning the advance payment in the event that the work, the delivery of goods or the provision of service is not correctly undertaken by the exporter.
    • Performance Guarantee: this type of guarantee is required of companies that need a period of time to manufacture and export their goods or services.

    It guarantees the correct execution of the contract by the exporter.

    • Payment Retention Guarantee: this type of guarantee is needed to free up an amount of the price that, under the contract has been withheld until the correct functioning of the goods or service sold has been checked. It guarantees the quality obligations of the seller once the goods or services subject to the contract are delivered.
    • Quality Guarantee / Warranty Guarantee: guarantees the quality of the product after it has been delivered to the buyer.

    For Importers:

    • Commercial Payment Guarantee / Payment Guarantee: this type of guarantee is requested by companies with import activity that need to provide repayment guarantees to their suppliers.

    It guarantees the payment obligation of the importer (buyer) in supply contracts.

    Financial:

    • Financial Guarantee / Credit Facility Guarantee: it guarantees the obligations that a company acquires to pay a financial institution that has granted it a loan or credit.

  • 5. Import financing facilities provided by Bankia

    One of your greatest needs is probably to obtain financing for your operations.

    Bankia has an extensive catalogue of products to facilitate the development of your international business:

    • Providing financing to pay for your imports.
    • Providing financing for your suppliers so that you can negotiate in the best conditions.

    • 5.1. Direct financing for your company

      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 (Forex insurance, 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.

    • 5.2. Financing for your suppliers

      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).

  • 6. The needs of an exporting company

    If you are an exporter, Bankia places the following thing services at your disposal:

    • Comex Expert Line Service.
    • Comex Notifications Service.
    • Oficina Internet Empresas.
    • Representative Office in Shanghai.
    • Forex Insurance (control foreign exchange risk).
    • Foreign Trade Facility (necessary for export advances with recourse: Pre- and Post-Financing,
    • ICO Exporters, CESCE Export Financing Certificates).

    The risks assumed by an exporter are similar to those of an importer (credit risk, foreign exchange risk, operational risk, etc.). However, an exporter also assumes the political or country risk.

    Bankia has the products and services necessary to reduce the risks inherent to international operations, in addition to an extensive network of classified correspondent banks, with risk granted, to guarantee and confirm the guarantees and documentary letters of credit issued by them in favour of our clients.

    We apply the greatest possible risk mitigators to reduce your risks:

    • Cooperating with public (CESCE) and private credit insurance companies.
    • Using ICO Mediation Facilities for internationalisation.
    • Using our risk facilities with foreign banks.
    • Looking for counterparties to purchase our customers' credits.

    As in the case of importing, the choice of the right means of payment will help your sale to be successfully completed, receiving in due time and form the amount agreed with your client.

    • 6.1. Business Risk Control: The correct means of payment choice

      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 signature of a contract 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 you contract a Forex insurance, you eliminate the exchange rate risk.

      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.

      When you send documents, you will receive for your control and monitoring, a COMEX Notification informing you of the courier number with 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 that point you will receive a Comex Notification informing you of 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.

      If you offer your client deferred payment, Bankia can offer you post-finance your sale, charged to your Comercio Exterior Facility or even, to study the possibility of paying the amount of your sale in advance without recourse. 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 CESCE Master Oro Policy, you could instruct that company to issue a Liquidity Certificate in favour of BANKIA (Without recourse factoring of CESCE Certificates).

      Or, in the event that Bankia can classify your clients' risk, you can request an International Factoring facility.

      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 the exchange rate coverages (Forex insurance, options, etc.).
      • Risk of merchandise delivery before the transfer and not receiving the funds.
      • You can control the movements registered in any of your 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.

  • 7. Export financing facilities provided by Bankia

    At Bankia we work hard to offer our customers financing facilities and structures, applying the greatest protections and mitigations against export financial risks.

    • 7.1. Short-term financing

      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 (Forex insurance, 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

      It is a product whereby Bankia buys the credit rights that, as an exporter, you hold with your clients, deriving from your sales with deferred payment, as long as they are protected by CESCE liquidity certificates.

      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.

    • 7.2. Long-term financing

      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 to finance 100% of the Export Contract, you can complete the non-financed part with a Commercial Loan, which is a complementary structure to the Buyer Loan.

      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 it is the conjunction of a Buyer Credit and a Credit FIEM within self structure that allows reaching financing for until the 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.

  • 8. Bankia products in collaboration with public institutions

    The Instituto de Crédito Oficial (Official Credit Institute) works to promote the internationalisation of Spanish companies. It obtains its resources from budgetary allocations and fixed yield bonds. The ICO works equally as a state loan company state and a financial agency of the state.

    As a government finance agency it has the ability to manage public funds destined for, among other purposes, cooperation in aiding the development of Third World countries.

    As a Specialised Credit Institution: it finances in the mid- to long-term the productive investments of companies established in Spain or Spanish companies established abroad.

    In this facet, the ICO acts in two ways:

    • Mediation facilities: the loans are requested from the banks and savings banks associated with each of the Facilities. The ICO provides the funds and the operational risk is assumed by the financial institutions, verifying that they comply with the conditions set by the ICO.
    • Direct operations: companies request financing directly from the ICO.

    Bankia places its services for mediation with the ICO at your disposal, bringing its experience and knowledge in the agile and correct processing of the operations.

    With Bankia you can use the following ICO internationalisation support facilities:

    • International ICO Facility (includes ICO Mid- and Long-Term Exporters).
    • ICO Exporters Facility.
    • ICO International Guarantees Facility.

     

    ICO INTERNATIONAL FACILITY

    This facility provides

    1. Financing for your investments abroad consisting of the acquisition of fixed productive assets.

    2. The financing for your liquidity needs outside the country.

    You may be interested to know:

    • The maximum amount you can request under this facility is 10 million euros for all financial institutions and for one or more operations.
    • The interest rate can be fixed or variable, but you will always benefit from the lower cost of the ICO fund.
    • It does not have any arrangement, study or availability fees.
    • The principal repayment installments and grace period are set by the ICO and variations are not permitted.
    • You can request 100% financing for terms of 1, 2 or 3 years.
    • Exceptional conditions apply for forward transactions of 10 years or more.
    • Bankia has experts who will be able to advise you and guide you through the procedures for this type of operation. If you have an operation that could be eligible for this scheme, do not hesitate to request our assistance.

     

    SHORT-TERM ICO EXPORTER FACILITY

    The Short-Term ICO Exporter Facility is included in the International Mediation Facilities that the ICO makes available to finance your internationalisation process.

    Of interest to you

    • In order to apply for post-financing under this facility you need to have a Foreign Trade Facility with the Export Post-Financing operation activated.
    • In order to apply for pre-financing under this facility you need to have a Foreign Trade Facility with the Export Pre-Financing operation activated.
    • The repayment period for this kind of financing cannot exceed 180 days.
    • Invoices can be issued in any currency, but the financing will always be in euros.
    • This financing is exempt from fees.
    • It is not necessary to sign any additional documentation to those required in any export financing (with the exception of Annex 0 that is required by the ICO).
    • The interest rate applicable to this financing benefits from the best ICO fund price.
    • It is compatible with other grants from Autonomous Communities or other institutions.
    • Up to 100% of the invoice can be financed, provided that it does not exceed the maximum amount per customer established by the ICO.

     

    ICO MID- AND LONG-TERM EXPORTER FACILITY

    Through this ICO Mediation Facility you can finance your Supplier, Buyer and Commercial Loans.

    You may be interested to know:

    • You can process your operations directly through Bankia. Consult us if you have an operation that could be eligible for this product.
    • The interest rate applicable to these transactions benefits from the best price ICO fund price.
    • The interest rate can be fixed or variable.
    • You can obtain the disbursement in several provisions, in both euros and dollars.
    • The maximum amount is 25 million euros or the equivalent value in dollars (USD), on one or more transactions.
    • The repayment term can be between 2 and 12 years with a grace period of up to 3 years.

     

    ICO INTERNATIONALISATION GUARANTEE FACILITIES

    The aim of this facility is to facilitate the participation of Spanish companies in international tenders through an agile mechanism for granting ICO guarantees additional to the guarantees issued by financial institutions to Spanish companies.

    You may be interested to know:

    • Your bids at international tenders will have the official support of the ICO if necessary.

  • 9. Epilogue

    Foreign trade raises productivity, leads to specialisation, stimulates and facilitates innovation and promotes competitiveness.

    To increase the effect of these advantages, all you have to do is look for the strategic alliance that favours your best and most comprehensive development. Its experience in Foreign Trade makes Bankia as one of the better financial institutions that they can accompany you in this process, with full guarantees successful.

    FIRST, DUE TO ITS DISPOSITION

    Bankia is fully committed to your customers. And is also firmly committed to the Trade trade, this having become one of the pillars supporting its renovation.

    SECOND, DUE TO ITS EXPERIENCE

    The professionals of Bankia has faced up to many operations, situations and projects that it has been able to organise by contributing its experience and knowledge, providing our customers the best service.

    Quality is one of our priorities.

    THIRD, DUE TO ITS SERVICE

    Bankia works continuously to give you the best service, both in person and online, investing in process automation and providing the management and administration of your operations.

    To do this, it invests in the development of tools that reduce the time you have to spend on tasks other than seeking out new business and improving your profits.

    We have adapted to your needs and we provide you with tools:

    • For control and information:
      • COMEX notifications.
      • COMEX Expert Line.
    • Of agility, administrative functionality and total availability:
      • Foreign Trade Facility.
      • Oficina Internet Empresas.
    • Of support and representation:
      • Representation office in Shanghai.

    AND LASTLY, DUE TO OUR CATALOGUE

    We have all the products you need for your trading activity. We can give you the operational and financial support that will make doing business abroad as easy as in Spain.

    In Bankia you help to eliminate your borders.

  • 10. Glossary of terms

    • BIC or SWIFT Code: the international Bank Identification Code (BIC) is a unique form of identifying any credit institution and/or its branches.
    • The International Chamber of Commerce is the business organisation that represents business interests globally. Was constituted in Paris in 1919 and it continues having its company headquarters in the French capital.

      It has own personality and its legal status is associative.

      The ICC's mission is to promote trade and investment among the world's businesses in different sectors, as well as to help them face up to the challenges and opportunities of globalisation. To achieve this mission, the ICC has a wide-ranging group of member companies in more than 130 countries involved in international operations, as well as business organisations, including the Chambers of Commerce in various countries.
    • IBAN: the International Bank Account Number, or IBAN as it is usually known, is a set of alphanumeric characters that allows the unique identification of an account held by a client in any bank anywhere in the world. It is defined in ECBS Standard 2, EBS 204 “IBAN: International Bank Account Number”, which is based on the ISO standard 13616 and complies with it.
    • The purpose of the IBAN it is to provide the automatic processing of cross-border transfers, to guarantee the accuracy of the details and to reduce manual intervention.
    • INCOTERMS: of the acrónimo English International Commercial Terms, are terms of three letters that reflect conditions of delivery of agreed merchandises by buyer and salesman.

      They are used to explain the costs of international business transactions and define the responsibilities between the buyer and the seller.
    • OIE: The Oficina Internet Empresas that Bankia places at the service of its customers so that they can consult and carry out all their foreign trade operations wherever they are.
    • SWIFT: (Society for Worldwide Interbank Financial Telecommunications) is a messaging system between financial institutions. Via the above-mentioned se system exchange interbank transactions (payment orders, remittances, documentary letters of credit, messages in free format, etc).

      It can also be used by companies to communicate with financial institutions.
    • URC 522: Uniform Rules for Collections published in 1995 by the International Chamber of Commerce that regulate Remittance operations.
    • UCP 600: Uniform Rules and Uses published in 2007 by the International Chamber of Commerce that regulate Documentary Letters of Credit operations.

Comercio Exterior Facility

a single risk contract for your Foreign Trade operations

  •  COMEX line

    Comercio Exterior Facility

    The Comercio Exterior Facility is a single risk contract for the majority of Foreign Trade operations.

  • COMEX Expert Line

    COMEX Expert Line

    Contact our foreign trade experts to clear up any doubts you may have about your operations.

  • Oficina Internet Empresas

    Oficina Internet Empresas

    Connect to the Oficina Internet Empresas and undertake your consultations and bank transactions simply and with total security.

  • COMEX Notifications

    COMEX Notifications

    We make it easy for you to manage your operations by informing you regularly of all the most important facts of your international activity.


  • Shanghai Office

    Shanghai Office

    Our Shanghai Representation Office offers a constant support service for our customers in their business transactions in China and its zone of influence.

  • SWIFT for Corporates

    SWIFT for Corporates

    It covers your company's need for automation and standardisation in its transactions and communications with financial institutions.