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
n.n.  Non-negotiable 
Negotiable  Used in documentary credits as an alternative to the word "payable" and meaning payable in a bank other than the issuing bank. Also used about original copies of a bill of lading
Negotiate Pay against drafts and/or documents with recourse
Notify party In a transport document, the party to be advised of the arrival of goods

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Guarantee glossary

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

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

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