Before processing the payment, the documentary credit needs the presentation of documents to guarantee the respect of the general terms.
There are several ways to carry out a documentary credit:
Payment on a sight basis
The payment is made as soon as the documents have been received.
Payment at maturity
The payment is made at the date defined in the contract.
The payment is made as soon as the documents have been received. The payment is made at the date defined in the contract.
Types of documentary credits
Documentary credit for exporters
The payment is guaranteed with the documentary credit for exporters of goods or services. The importer's bank guarantees the payment once the credit conditions are met.
Documentary credit for importers
The delivery of goods or services is guaranteed subject to the presentation of compliant documents by your counterpart.
This instrument is subject to the rules of documentary credits, publication 600 of the International Chamber of Commerce.