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Additional financial services |
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Documentary
payments
Documentary payments are a way to ensure that the importer, through
documents, retains control of the goods until they are paid for. This is de
facto payment against the goods, usually against the documents of title that
represent the goods, or against the release of the goods to the importer.
Documentary payments minimise the commercial risk and, as high quality
payment instruments, provide the opportunity to obtain better pricing
conditions.
- Documentary credit
A documentary credit is a written obligation by the bank issuing a letter
of credit upon
request by the client (principal, buyer, applicant), to provide a
specified person (the recipient of the letter of credit, the beneficiary
or the seller) with a specified performance if the beneficiary of the
letter of credit fulfils the conditions of the letter of credit stipulated
by the principal within a certain period.
With a documentary credit, unlike a documentary collection, the bank is
under obligation.
- Documentary collection
A documentary collection is a form of payment where the issuing of commercial
documents and potentially the release of goods is conditional upon
payment, the acceptance of financial documents or the fulfilment of other
conditions by the importer (customer, drawee).
A documentary collection is always
a payment obligation for the importer and not the bank.
CEB handles documentary credits exclusively
subject to ICC rules as stipulated in UCP 500 and documentary collections
subject to URC 522.
Documentary credits (export as well as import)
and documentary collections (export as well as import) are
prepared by CEB mainly in connection with the provision of supported financing:
- With provided export financing in the form
of direct credits to the exporter or the foreign party on the basis of a
concluded credit contract
- With provided financing for export-based
production in the form of direct credits to the exporter or the
manufacturer
- With provided bank guarantees
Funds transfers and
billing
General conditions:
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