Documentary Credit Comparison Table
Product highlights
A quick guide to the most common types of Documentary Credit (DC).
This page is about:
Which Documentary Credit is right for you?
In basic terms, a Documentary Credit (DC) is an undertaking by a bank to make a payment provided the terms of the DC are met. There are several types of DC – the main difference is that some are more suited to transactions involving middlemen or traders.
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Specific to transactions involving traders | | | | | |
Buyer requires credit facility to issue DC | | | | | |
Degree of freedom to specify terms of DC | | | | | |
Supplier is guaranteed payment if terms are met | | | | | |
DC issued on a transaction-by- transaction basis | | | | | |
Degree of ease for supplier to obtain finance | | | | | |
Reminder: "To borrow or not to borrow? Borrow only if you can repay!"
*Terms may be better due to support of Master DC
** Some terms to follow Master DC
*** If the terms of the Transferable DC are met
Disclaimer:
Global Trade Solutions transactions may be subject to credit approval. Other restrictions, including specific country regulations, may apply. Foreign currency exchange rates may apply to certain trade transactions.
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