A21: Trade Action Map 

Export Transaction Financing    ( Standard Term Sheet )

Documentary Letters of Credit can be used in conjunction with Assignments of Proceeds as vehicles for pre-shipment, or export transaction financing by the seller/beneficiary.  The seller receives a Purchase Order supported with a Documentary Letter of Credit, but does not have open terms with the supplier or manufacture to ship the goods.  The seller assigns part of the proceeds of the Letter of Credit to the finance company as the reimbursement mechanism for the finance company providing the funds to the supplier or manufacture to ship the goods, and provide the documents for the seller to negotiate the Credit.