Financial
Documentary Credit
International payment method where a bank commits to pay the exporter against presentation of compliant documents.
International payment method where a bank commits to pay the exporter against presentation of compliant documents.
Documentary credit (synonym for letter of credit) is regulated by ICC UCP 600. The bank pays the exporter when stipulated documents are presented within the established timeframe.
Letter of Credit
A bank payment instrument in which the issuing bank commits to paying the exporter if documentary conditions are met as established.
FinancialConfirmed Letter of Credit
Letter of credit where a second bank adds its payment commitment to the issuing bank's, giving double guarantee to the exporter.
FinancialDocumentary 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.