Overview
Documentary credits are essential tools in international trade finance, providing security and assurance to both buyers and sellers. They facilitate transactions by ensuring that payment is made only when the seller presents the required documents, thus minimizing risks associated with cross-border ...
Key Terms
Example: The buyer's bank issued a letter of credit to ensure the seller would be paid.
Example: The exporter is the beneficiary of the letter of credit.
Example: The importer is the applicant in the transaction.
Example: The issuing bank confirmed the credit after reviewing the application.
Example: The advising bank notified the exporter of the credit's terms.
Example: The commercial invoice included the price and quantity of the goods.
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intermediateKey Concepts
Letter of CreditBeneficiaryDocuments RequiredPayment Terms