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.



Documentary credit term Explanation
In favour of  The documentary credit's beneficiary; See Beneficiary above
Incoterms  Delivery conditions See also Incoterms 2000
Irrevocable Documentary credit which cannot be cancelled without the acceptance of the beneficiary and any confirming bank
Letter of credit The American expression for documentary credit
Multimodal Used in the expression "multimodal transport" to mean where more than one mode of transport is used

Terms and expressions related to international trade

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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