Synonymous with " letter of credit."
The basis of international trade by means of which payment is made against surrender of specified documents . A letter addressed by a banker to an exporter ( usually but not always) undertaking to make payment to him against documents relating to the dispatch of goods . The documents usually required are bill of lading or airway bill , invoice and insurance document and if these are in order and shipment has been made in as specified in the credit , the bank will pay for the consignment in exchange for the documents. It is important that the details of the credit are in accordance with the contract of sale between the exporter and importer and letters of credit should be checked carefully when first received by the exporter to ensure that he can comply with its conditions. An international code of practise called the Uniform Customs and Practise for documentary credit.
A documentary credit calling for a sight draft means the exporter is entitled to receive payment on sight, i.e. upon presenting the draft to the bank. A term documentary credit may allow for payments to be made over terms of 30, 60, or 90 days, or at some specified future date.
a bank guarantee of payment to your supplier
a commitment given to you as the exporter by the buyer's bank
Undertaking entered into by the buyer's bank (issuing bank) in favour of a supplier. This undertaking is generally sent to the supplier via his bank which will have to inform him of it. It is a commitment to pay a given sum (in one or more instalments depending on the number of shipments) on a given date (call date of x days) or to accept a banker's draft (valid for x days) against presentation of one or more documents in accordance with the requirements governing documentary credit and generally representative of specific merchandise and their dispatch within a given time to a given destination. If the documentary credit allows, the supplier, who is the beneficiary of the credit, can ask his own bank to confirm the undertaking made by the bank (issuing bank) of the purchaser.
A commercial letter of credit providing for payment by a bank to the name beneficiary, usually the seller of merchandise, against delivery of documents specified in the credit.
A written promise by a bank to pay a beneficiary subject to submission of the required documents.
a written assurance of a bank to pay a specific amount in the agreed currency upon submission of required documents.
An undertaking (also called a letter of credit) by the issuing bank to make payment to a named beneficiary, usually the seller of merchandise, against delivery of documents specified in the credit
A conditional undertaking by a bank to make payment, often abbreviated to "credit". More precisely, it is a written undertaking by an issuing bank, on behalf of an importer (the applicant), that payment will be made for goods or services supplied by an exporter (the beneficiary), provided that the exporter complies with all the terms and conditions established by the credit.
A conditional undertaking by a bank to make payment, often abbreviated to credit. More precisely, it is a written undertaking by a bank (issuing bank) given to the seller (beneficiary) at the request of the buyer (applicant) to pay a sum of money against presentation of documents complying with the terms of the credit within a set time limit.
sometimes used as another name for a letter of credit.
Written undertaking by a bank on behalf of an importer authorizing an exporter to draw funds from a bank up to a specified amount under specific terms and conditions. They are used to facilitate international trade. In the United States these instruments are called commercial letters of credit.
A banking term referring to an instrument issued by a bank, on behalf of a buyer, in favor of a seller, guaranteeing payment to the seller, based upon the seller's documents complying with the terms and conditions stipulated in the credit. Synonymous terms - "Commercial Letter of Credit" and "Commercial Credit."