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Documentary Payments - Coggle Diagram
Documentary Payments
in general
sales contract
bear the charges
agree?
No
rule of the International Chamber of Commerce
Yes
charges collected by their banks
specific documentation
the terms
cash against documents
at sight(a/s)
at first presentation
at the latest ...
documents against acceptance
bill of exchange
on some fixed date
after sight (a/s)
after date (a/d)
a letter of credit
advantages
guarantee for payments
strict rules
followed to by most banks
safeguards both
to the buyer
the delivery time
until the goods have been shipped
to the seller
obligation of the buyer’s bank
determine the date
reasons for the use
a new trade relationship
concern over creditworthiness
potential economic/sovereign risk