Foreing trade finance

As part of Bancoldex’ more comprehensive strategic front, we support internationalization processes and corporate exports in the country by promoting competitiveness in global markets we support internationalization processes and promote the Colombian exports, seeking to improve their competitiveness in global markets.

foreign trade finance is one of the credit solutions that we have designed especially specially designed to promote Colombian companies’ the export process of Colombian companies, and creating payment facilities options for their customers.

Credit line for buyers

Bancoldex finances payments made by international buyers of Colombian goods and/or services abroad through financial intermediaries domiciled within or outside the buyer’s country, using They may use bank payment instruments such as: term letters of credit, guaranteed bills of exchange, promissory notes, payment commitments, securities covered by stand-by guarantees, among others.

Financing for engineering, construction and other services projects

Under the same characteristics of the Buyer Credit Line, Bancoldex can also finance the development of engineering and / or construction projects abroad, carried out by Colombian companies.

When it comes to this type of project, the bankable amount may be:

Up to 100% of the Colombian component of goods, services and inputs related to the project.
Up to 50% of the component imported from third countries that are part of the project.
Up to 85% of the local costs and expenses necessary for its execution.

The amount will also be due to the participation of the Colombian component within the total cost of the project, and to the approval terms of the respective Bancoldex credit instance.

Beneficiaries:

Importer of engineering and / or construction projects carried out by Colombian companies.
Colombian exporters of goods and / or services.v Foreign financial intermediaries.

See how the financing mechanism for buyers of Colombian goods and services operates through letters of credit.

The Colombian exporter and the international buyer agree on payment terms, establish the type of Letter of Credit (irrevocable, confirmed, at sight, acceptance, deferred payment) and negotiate the costs.
The international buyer requests his/her bank to open the Letter of Credit according to the credit limit available.
The issuing bank issues the Letter of Credit on behalf of the exporter to be confirmed by Bancoldex.
Bancoldex confirms the L/C to the exporter.
The Letter of Credit is paid or discounted for acceptance or deferred payment once the required documents are submitted in perfect order.

Who have to participate?

Bancóldex

Colombian Exporter

International Buyer

Correspondent bank abroad

What do exporters get?

The barganing power increases as a result of the deadlines that may be offered according to the buyer’s need.
Liquidity is obtained.
Collection is improved abroad.
Credit limit is not affected.
Exchange - rate risk is reduced.
Entry into new markets is facilitated.

What do buyers get?

The Colombian exporter and the international buyer agree on payment terms, establish the type of Letter of Credit (irrevocable, confirmed, at sight, acceptance, deferred payment) and negotiate the costs.
The international buyer requests his/her bank to open the Letter of Credit according to the credit limit available.
The issuing bank issues the Letter of Credit on behalf of the exporter to be confirmed by Bancoldex.
Bancoldex confirms the L/C to the exporter.
The Letter of Credit is paid or discounted for acceptance or deferred payment once the required documents are submitted in perfect order.

Find out how the financing mechanism for the buyer of Colombian goods and services operates through guaranteed bills of exchange.

The Colombian exporter and the international buyer agree on the payment method. Aspects such as the term and who will pay for interests are determined.
The buyer abroad requests the bill of exchange guarantee from his/her bank with the amount and term agreed. This request goes against the credit limit that the buyer has with his bank and the cost is negotiated between them.
The bank approves it based on the importer's credit limit, sends a SWIFT message confirming the guarantee to Bancoldex and sends the physical bill of exchange by certified mail.
Once Bancoldex has the physical bill of exchange, it informs the Colombian exporter and gives it to him/her for endorsement and negotiation.
Bancoldex verifies the message from the importer's bank, validates the documents supporting the export and the endorsement of the bill of exchange, verifies that it is within the list of customers and disburses.

Who have to participate?

Bancóldex

Colombian Exporter

International Buyer

Correspondent bank abroad

What do exporters get?

The barganing power increases as a result of the deadlines that may be offered according to the buyer’s need.
Liquidity is obtained.
Collection is improved abroad.
Credit limit is not affected.
Exchange - rate risk is reduced.
Entry into new markets is facilitated.

What do buyers get?

The Colombian exporter and the international buyer agree on payment terms, establish the type of Letter of Credit (irrevocable, confirmed, at sight, acceptance, deferred payment) and negotiate the costs.
The international buyer requests his/her bank to open the Letter of Credit according to the credit limit available.
The issuing bank issues the Letter of Credit on behalf of the exporter to be confirmed by Bancoldex.
Bancoldex confirms the L/C to the exporter.
The Letter of Credit is paid or discounted for acceptance or deferred payment once the required documents are submitted in perfect order.

Find out below how the financing mechanism for the buyer of Colombian goods and services operates through STAND-BY guarantees.

Factors such as the term, who pays for the interest and whether it is shared between both parties are determined by the Colombian exporter and the buyer abroad.
The buyer abroad requests the Stand-By guarantee from his/her local bank. This request runs counter the credit limit the buyer has with his/her bank and the cost is negotiated between them.
The conditions of the guarantee are determined between Bancoldex and the correspondent bank abroad. Bancoldex suggests the models to be used.
Once the operation is approved, the correspondent bank abroad proceeds to send the guarantee via SWIFT to Bancóldex with the conditions approved by the two entities.
The exporter issues a bill of exchange for each consigned shipment stating amount, term and who pays for the interest, to be accepted by the buyer.
The buyer sends the physical bill duly drawn and accepted to Bancoldex.
Once Bancoldex has the physical bill, it informs the Colombian exporter and gives it to him/her for its corresponding endorsement and negotiation.
Bancoldex buys the bills covered by the Stand-By guarantee and pays on the shipping documents and the commercial invoice. It credits to the compensation account or negotiates the foreign currencies.
Upon maturity of the bills, the buyer pays to Bancoldex the capital and interest, if applicable, and releases the Stand-by guarantee’s limit.

Who have to participate?

Bancóldex

Colombian Exporter

International Buyer

Correspondent bank abroad

What do exporters get?

The barganing power increases as a result of the deadlines that may be offered according to the buyer’s need.
Liquidity is obtained.
Collection is improved abroad.
Credit limit is not affected.
Exchange - rate risk is reduced.
Entry into new markets is facilitated.

What do buyers get?

The Colombian exporter and the international buyer agree on payment terms, establish the type of Letter of Credit (irrevocable, confirmed, at sight, acceptance, deferred payment) and negotiate the costs.
The international buyer requests his/her bank to open the Letter of Credit according to the credit limit available.
The issuing bank issues the Letter of Credit on behalf of the exporter to be confirmed by Bancoldex.
Bancoldex confirms the L/C to the exporter.
The Letter of Credit is paid or discounted for acceptance or deferred payment once the required documents are submitted in perfect order.

To connect Bancoldex resources with businessmen, we have a network of banking correspondents abroad, through which we support the foreign trade activities of Colombian companies and offer financing to buyers of Colombian goods and services in the foreign market.

Get to know the Bancoldex allies through which you can connect with our credit offer:

Bolivia