Financial
Confirmed Letter of Credit
Letter of credit where a second bank adds its payment commitment to the issuing bank's, giving double guarantee to the exporter.
Letter of credit where a second bank adds its payment commitment to the issuing bank's, giving double guarantee to the exporter.
A confirmed L/C has payment guarantee from both the issuing bank (in the importer's country) and the confirming bank (usually in the exporter's country), eliminating country and bank risk.
Letter of Credit
A bank payment instrument in which the issuing bank commits to paying the exporter if documentary conditions are met as established.
DocumentsIrrevocable Letter of Credit
International payment instrument that cannot be modified or cancelled without consent of all parties involved.
FinancialDocumentary Collection
Payment mechanism where the exporter's bank sends shipping documents to the importer's bank, releasing them against payment (D/P) or acceptance (D/A). Cheaper than a letter of credit.