Financial
Documentary Collection
Payment mechanism where the exporter's bank sends shipping documents to the importer's bank, releasing them against payment (D/P) or acceptance (D/A). Cheaper than a letter of credit.
Payment mechanism where the exporter's bank sends shipping documents to the importer's bank, releasing them against payment (D/P) or acceptance (D/A). Cheaper than a letter of credit.
The exporter delivers documents to their bank (remitting), which sends them to the importer's bank (collecting). The importer receives documents against immediate payment (D/P) or acceptance (D/A).
Letter of Credit (L/C)
Payment instrument issued by a bank at the importer's request, guaranteeing the exporter payment if documentary conditions are met. The primary payment mechanism in international trade.
DocumentsBill of Lading (Ocean)
Maritime transport document serving as a contract of carriage, receipt of goods, and document of title.
DocumentsCommercial Invoice
Document issued by the seller/exporter describing the goods sold, their price, terms of sale, and details of the parties involved.
FinancialInternational Factoring
Financing where a financial entity (factor) purchases the exporter's receivables at a discount, providing immediate liquidity. The factor assumes the collection risk from the foreign importer.