Documentary Credit GlossaryDocumentary Credit Glossary

A documentary credit is one of the most secure payment methods in international trade, offering the exporter a conditional payment guarantee from the importer’s bank. There are a number of specialist terms used in connection with documentary credits, which may be confusing if you have not used documentary credits before.

An explanation of relevant terms and expressions connected with documentary credits can be found here.

 

GlossaryGlossary

Documentary credit term Explanation
Clean bill of lading  Transport document without markings regarding damage to goods or packaging
CMR Waybill  Overland transport document
Confirmation This means that a bank takes on a payment obligation together with the issuing bank
Consignee Recipient
Consignor Sender
Deferred payment Alternative to payment at sight
Discounting Buying the outstanding debt with a deferred payment
Documentary credit An undertaking (also called a letter of credit) by the issuing bank to make payment to a named beneficiary, usually the seller of merchandise, against delivery of documents specified in the credit
Expiry date/place Indicates when and where the documentary credit expires for presentation of documents
For account of The documentary credit's order giver; See Applicant above

Want to know more?Want to know more?

Guarantee glossary

If you are interested in guarantee terminology, see the guarantee glossary.

See glossary
Collection glossary

If you are interested in collection terminology, see the collection glossary.

See glossary