Payment methods

Payment methods

The information on this page is all about payment methods accepted in Brazil for commodity payments.

Which banks are accepted for purchase from abroad in Brazil?

All banks that are in the top 50 list in the world.

The most common forms of payment in this type of experior trade are as follows:

SBLC - Standby Letter of Credit. 

StandBy Letter of Credit is a written commitment by a bank that issues it to pay a certain amount of money on behalf of the bank's customer in favor of a beneficiary in the event that the customer / buyer is unable to meet its financial obligation to the beneficiary / salesman.

DLC - Documentary Letter of Credit.
A document issued by a bank that guarantees payment of a buyer's invoices for a specified period and up to a specified amount.

RDLC - Revolving Documentary Letter of Credit.
RDLC is the same as DLC, but revolves around the life of the contract.

TT - Telegraphic Transfer
A telegraphic transfer (TT) is an electronic method of transferring funds utilized primarily for overseas wire transactions.
Bank transfer. 

MT - 103
Bank transfers. SWIFT MT-103 is used by the bank when its customers wish to make payment to customers of another bank in another country.

MT - 760
When an MT-760 is issued, the issuing bank places a pool of customer funds, which it guarantees that the funds have been established for payment to the MT-760 beneficiary.

RWA - 
Readiness, Willingness and Availability
A banking term that means: readiness, disposition and availability of funds for a specific transaction.

BCL - Bank Comfort Letter or POF - Proof of Funds.
BCL, or Bank Comfort Letter, is a document usually issued by investment banks in which the bank says the client has a good credit history, sufficient to support large transactions, or in which the bank he says that he is willing to grant loans to the client, enough to cover the value of a certain operation.
In other words, it is a vote of confidence issued by the bank, with the purpose of helping to generate trust (comfort) between the parties.
It is usually sent with the LOI letter of intention to prove the purchasing company's financial strength.