Using a documentary remittance, the seller authorises the bank to transfer forwarding and transportation documents to the buyer after the contractually agreed payment has been made.
Similar to a commercial letter of credit, but with a more streamlined procedure, involving lower costs for both the buyer and the seller.
Documentary remittance offers the following benefits:
- For the buyer
Payment is made only upon delivery of goods by the seller and transfer of the forwarding documents to the bank
- For the seller
Forwarding documents are made available to the buyer only after the payment has been effected