We help you manage risks on product delivery and payment schedules.
In foreign trade, importers focus their attention primarily on the timely delivery of the agreed upon quantity and quality, whereas, for exporters, assuring on-schedule payments in the agreed currencies is the first priority.
Collection Documentation
It refers to the collection of receivables through a bank with documentation. Both essential types of collection documents distinguish between the completion of the documents against payment or against the acceptance of an exchange. Payment processing by means of collection documentation requires that there be no doubt about the contract partner’s willingness to pay and the ability to deliver. Advantages of collection documentation are
Letter of Credit Documentation
It consists of the contractual obligation of a bank with a mandate to provide a specified monetary payment after a customer provides proof of the submission of specific documents and the satisfaction of certain conditions. This obligation is abstract because exceptions to the underlying transaction are not possible. Letters of credit have both a security/payment and financing function. Depending on the scope, you basically decide on: