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
Presentation period Indicates the deadline for the presentation of documents under the documentary credit
Reimbursement Payment between the issuing and paying banks
Revocable Documentary credit which the issuing bank can cancel at any time up to the presentation of documents
Revolving Documentary credit where the amount is re-established – under special conditions – after the documentary credit has been used
Tenor The period of deferred payment
Transferable Documentary credit where the beneficiary is allowed to transfer its rights under the documentary credit, wholly or in part, to one or more subcontractors
UCP 600 The international rules for documentary credits: Uniform Customs and Practice for Documentary Credits, ICC Publication No. 600
Usance Credit Documentary credit with deferred payment. See Deferred payment above

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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