After the issue and the notification of a documentary credit, the next step is its actual processing. As we saw in a previous post – Documentary credit – Definition, main actors, how it works – the exporter’s bank can play two roles: 1) It may just notify the exporter that there is a documentary credit […]
After the issue and notification of a documentary credit, the next step is its actual processing. As we saw in the previous post – Documentary credit – Definition, main actors, how it works – the exporter’s bank can play two roles: 1) It may just notify the exporter that there is a documentary credit in […]
Documentary credit, not to confuse with documentary collection, is the most used payment technique in international trade. It is therefore of particular interest for trade professionals. What is a documentary credit? How does it work? Who are the main actors involved in a documentary credit process? Read on to get the answers to these questions […]
Documentary collection is one of the common payment techniques used in international trade to facilitate import/export operations. In this post, we provide the definition of a documentary collection, present the key players and the related process steps. Before starting our analysis, take note of this interesting remark: documentary collection belongs to payment techniques that require […]
In the previous article, we started our analysis of payment techniques with the payment against invoice. In this post, we consider another payment technique called Cash on delivery or Cash against delivery. In Trade Finance, Cash On Delivery (COD) is a payment technique in which “Cash” is collected by the carrier upon delivery of the […]
We begin our analysis of payment techniques with the payment against invoice or simple collection. This technique involves requesting the payment of exported goods against a simple presentation of the commercial invoice. The importer is supposed to be paid upon receipt of the invoice (and possibly all documents enabling him to clear them), not after receipt […]
Trade Finance is a very broad topic (about 1.5 billion results on google). Since Trade and payments are closely interlinked, it can be interesting to take a closer look at it. Furthermore, we have studied cross border payments in the last weeks. What we learned should help us to understand trade finance faster, at least […]