The Documentary Credit A documentary credit, also called letter of credit, is a means of payment allowing your company to safeguard your import and export transactions worldwide. Import Documentary Credit Characteristics: As a buyer, you want to be sure about the quality of the products imported, as well as the delivery times. On your instruction, ING Luxembourg commits itself to make payment to your supplier on presentation of the documents stipulated in the documentary credit. Your Benefits as Buyer: you yourself determine the documents required in the transaction (invoices, transport document, etc.); a documentary credit allows you to make payment only if the documents stipulated are compliant; you can refuse non-compliant documents; and you guarantee payment for the goods to your supplier and thus strengthen your commercial relationship. Export Documentary Credit Characteristics: As a seller, you want to be certain that settlement shall take place within the expected period once the goods have shipped. ING Luxembourg guarantees your agreement. Your Benefits as Seller: a documentary credit allows you to receive your payment or payment commitment on the due date, subject to you sending the compliant documents that are requested in the documentary credit to your customer; and you thus safeguard your exports and reinforce your commercial relationship
Posted on: Wed, 22 Oct 2014 16:58:49 +0000
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