This is a method of payment in international trade in which the Bank processes commercial and financial documents in accordance with customer’s orders for collection of receivables or shipping of documents under different conditions. The bank bears no responsibility with regard to the payment due nor does it exert control over the documents provided.
The advantages of this method of payment include simplified procedure, promptness and expediency of payments, lower bank fees as compared to the documentary credit and a possibility of presenting the documents to the buyer against concurrent payment of the amount due.
Documentary Letter of Credit
The documentary Letter of Credit is an irrevocable commitment of the Bank to pay the seller for goods and services a definite amount immediately (at sight) or at a later date (deferred payment) provided all pre-defined documents under the letter of credit’s terms are presented. The bank bears no responsibility with regard to control of the goods subject of the deal, but only with regard to documents compliance with the terms of the documentary Letter of Credit.
The advantages of this method of payment include simplified import and export procedures, higher degree of security for the seller that he/she will receive the payment due and for the buyers that the goods will be received in compliance with the negotiated terms.
The Bank’s fees for documentary services are given in Investbank’s Term and Conditions.
Exchange ratesто 23.02.2024 08:30