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Home > Intl Payment Methods
International Payment Methods -
Recommended Terms and
Conditions for Payment.
Documentary Letter of Credit -
Payment at shipment
Documentary Collection - Payment at
delivery
Open Terms - Payment after delivery
Note
1: This page can be copied to a commercial web site |
Example Page |
Note 2: Country to Country document requirements ref.
www.FedEx.com (Global
Business Manager).
Note 3: Letter of Credit and/or Documentary Collection management
www.internetlc.com/LCmanagement/lcprocessing.htm
Note 4: Online Seminar on Payment Methods
Intl Payment Methods
Documentary Letter of Credit:
A Letter of Credit is an undertaking issued by a bank in favor of a Beneficiary
(exporter), which substitutes the bank's creditworthiness for that of the
Applicant (Importer). It is used to pay for a shipment of goods or
services from one party to another. The following are the minimum
terms, conditions and information that is needed to be agreed upon between the
Applicant and Beneficiary for the Applicants bank to issue the Credit to the
Beneficiary. The Terms should reflect the Purchase Agreement or Contract
between the parties as to the description of goods and services, transportation
method, Incoterm, shipping points, currency and the like.
| SWIFT No. |
Description (MT 700 Format) |
Terms |
| |
|
|
| 40A |
Form of Documentary Credit |
Irrevocable (Option: & Transferable) |
| 50 |
Applicant Name |
Applicant's (Importers) Name, Address,
Telephone, Facsimile & Email. |
| 59 |
Beneficiary |
Beneficiary's (Exporty Name,
Address, Telephone, Facsimile & Email. |
| 32B |
Currency / Amount |
USD $ X,XXX.XX |
| 42C |
Drafts At |
Sight (or) 1-180 Days from Bill of Lading |
| 43P |
Partial Shipments |
Allowed (or) Not Allowed |
| 43T |
Transshipments |
Allowed (or) Not Allowed |
| 44A |
Loading / Dispatch At/From |
Sea Shipment: FOB (or) CFR (or) CIF "From" |
| 44A |
Loading / Dispatch At/From |
Air Shipment: EXW (or) CPT "From" |
| 44B |
For Transportation To |
Sea (or) Airport "To" |
| 44C |
Latest Date of Shipment |
dd mmm yy (minimum 21 days from Credit expiry date) |
| 45A |
Goods Description |
Equipment And/Or Materials per PO No. XXXXX. |
| 46A |
Documents Required: |
1. Bill of Exchange |
| |
|
2. Bill of Lading (or) Waybill |
| |
|
3. Commercial Invoice |
| |
|
4. Packing List |
| 47A |
Additional Conditions |
Documents issued in English language. |
| 49 |
Confirmation |
Confirmed (Preferably) |
Documentary Collection
Instructions given by a seller (exporter) to its bank that the documents
attached to a draft for collection are deliverable to the drawee (buyer /
importer) only against the drawee's payment or acceptance of the draft.
| --- |
Documents Required |
1. Bill of Exchange |
| |
|
2. Bill of Lading (or) Waybill |
| |
|
3. Commercial Invoice |
| |
|
4. Packing List |
Open Account
A seller (exporter) ships goods along with the related documents to a buyer
(importer) with no guarantee of payment. The buyer then makes payment on
its account in the manner and terms specified in the invoice.
| --- |
Document Required |
1. Commercial Invoice |
|
InterNetLC.com
PreShipment
Financing for Exporters.