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Commercial Discounts and Advances

Commercial Discounts
and Advances

7.600% TAE (annual effective interest rate)

Receive in advance the revenues from your exports!

Advantages

The Commercial Discounts and the Advances are credit operations through which the Bank finances the exporter by the counter value of the exports made.

The exporting company delivers to Millennium bcp the documents concerning the export operation and the Bank, in turn, remits those documents to a Bank of the country of the importer which will deliver the same to the latter in accordance with the collection instructions defined by the exporter.

These operations assume the following forms:

- In an Commercial Discount  - the amount of the credit made available to the Client  is based on a complete set of documents, that is, when the Bank receives from the Client all the original documents, being able to control the access to the commodities.
- Advance (Financial Discount) - the amount of the credit made available to the Client is not based on a complete set of export documents. Hence, it implies more risk.

  • Optimization of the Treasury Management
    These credit products enable the company to optimize the short term management of treasury by anticipating the income generated by the exports made by our Clients.
  • Immediate Liquidity in a simple and comfortable manner
    Aimed at exporting companies that know their foreign clients well. It enables to sell with credit and, at the same time, anticipate the profits coming from exports.
  • Reduction of administrative costs
    All the collection service is made between Banks, releasing the Companies from heavy administrative tasks.

Costs

Simulation:
Simulation: TAE (annual effective rate) computed based on a TAN (annual nominal rate) of 6.750% - Euribor 6 months (the index is calculated as the average of the daily offer rates of the month prior to each interest-bearing period, rounded to the nearest three decimal places, which in this instance was January 2022, -0.527% - basis 360, being negative it is rounded upwards to 0.000%) plus a 6.75% spread considering a new operation amounting to 50,000€ to be paid in 90 days.

The computation includes interests paid in advance and the fees and collection expenses. The computation of the TAE includes all the charges, namely mandatory insurances (set forth by D.L. 220/94).

Consult the Pricing in force, available for consultation at any  Millennium bcp Branch near you.​

Features

The Commercial Discount and the Advances are based on the presentation of the documents that support the exports made. They can assume the following forms:

Commercial Discount:

Occurs when the amount of the credit made available to the Client is based on a complete set of documents (Documentary Remittance), justifying the export, that is, the importer has to collect the documents from a Credit Institution that will only deliver the same to the importer against the payment of the concerned amount, acceptance of a bill or commitment to pay within the agreed deadline. Without the presentation of these documents the commodities cannot be withdrawn.

Advance:

Occurs when the amount of the credit made available to the Client is not based on a complete set of exporting documents and the exports go directly from the exporter to the importer. This kind of credit involves more risk since the importer receives directly all the necessary documents to withdraw the commodities and the Bank does not act as the "Collecting Agent".

Other possibilities able of being used in the exporting activities are the discounts against the presentation of an "accepted bill" or a "pagaré" (promissory note).

Amount:

Assessment on a case-by-case basis.

Currency:

Euro or a foreign currency (provided that it is rated by Banco de Portugal).

Term:

Assessment on a case-by-case basis.

Collaterals:

Assessment on a case-by-case basis.


The making of these operations depends on the prior appraisal and decision by the Bank on the risk involved.

How to subscribe

Contact your Client Manager or go to a Millennium bcp Branch and find the best solution for your company.

Other issues

For more information, contact your Client Manager or go to a Millennium bcp Branch.

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