Payment Types
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Letter of Credit
Basically a letter of credit provides a payment guarantee to the exporter upon the fulfillment of obligations in accordance with the specified terms. A letter of credit involves a conditional Bank guarantee and it is issued upon applicants’ demand by our Bank. If the exporter does not fulfill the conditions in the letter of credit, the importer is not obligated to pay the exporter after the goods are shipped. The importer is guaranteed that the goods will be shipped on time according to the conditions in the letter of credit.
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Payment Against Document
Under the type of payment against documents, the exporter presents the documents relevant to the transaction to its Bank and the exporter’s Bank relays the same to the importer’s Bank with an instruction releasing the documents to the importer in return for payment.
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Cash Against Goods Payment
The exporter presents the documents regarding the shipped goods to the importer directly. After clearing the goods, the importer makes the required payments.
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Advanced Payment
In this type of payment, the importer makes an advance payment for the goods prior to the shipment of the goods by the exporter.