The Documentary Letter of Credit provides protection for both parties to a commercial transaction - the buyer’s bank (Ordering party of the letter of credit) is obliged to pay to the seller (Beneficiary under the letter of credit) the agreed amount if the seller presents the documents provided in the letter of credit within the set deadlines.
Therefore the Documentary Letter of Credit is a widespread and reliable form of payment.

Important: In these operations, banks only check the documents and do not express an opinion on the goods/services to which these documents refer.

There are various forms of documentary letters of credit – payable at sight or with deferred payment, confirmed or unconfirmed, and so on. The Bank carries out all types of operations related to the documentary letters of credit in all major currencies. There is no universal type of letter of credit.

Talk to us about your needs. UBB can professionally advise you on the form of documentary letter of credit that is best suited to you.

Export Documentary letter of credit (Export letter of credit)

The Documentary Export letter of credit received by UBB represents an irrevocable commitment of the Bank to the Buyer (Issuing Bank) for payment of a certain amount of money for the benefit of the Seller (Beneficiary under the letter of credit) when the Beneficiary submits the documents agreed upon in the letter of credit in strict accordance with the terms and conditions provided therein.

The Documentary Letter of Credit is received at the seller’s bank (Advising Bank)

1. UBB, as an advising bank, will notify (advise) you in writing about the receipt of the letter of credit and confirm its authenticity.
2. In case the letter of credit is issued with an instruction to be confirmed and if the Beneficiary requests such confirmation, UBB may add its confirmation thus undertaking an irrevocable commitment to the Beneficiary for payment against presentation of conform documents to its desks. The confirmation of the letter of credit represents an independent commitment for UBB to make a payment to the client that is a Beneficiary of the letter of credit in addition to the commitment of the issuing bank.
   Important: The addition of a confirmation to a received documentary letter of credit must be agreed in advance with UBB and can only be made subject to the necessary bank limits.
3. Once the Beneficiary has dispatched the goods, the Beneficiary prepares and submits to UBB the necessary documents in order to receive payment under the letter of credit issued in favour of the Beneficiary.
4. UBB reviews and sends the documents to the issuing bank. After receiving the documents, the issuing bank reviews them for compliance with the terms in the letter of credit and, if they are compliant, makes a payment or confirms a payment at maturity.

Import Documentary letter of credit (Import letter of credit)

UBB issues letters of credit as ordered by its clients against blocked cash or approved credit limits.

Tariff of Fees and Commissions for Legal Entities and Sole Traders

You can order the issue of a documentary letter of credit by:

1. Providing full cash cover or by negotiating the credit line with the bank in advance
2. Completing and depositing with the bank a form signed by persons authorized to do so Application for issue of a letter of credit or by ordering the opening of a letter of credit through 

Your application for the issue of a letter of credit will be reviewed in accordance with the Bulgarian law and UBB’s internal rules.