Documentary Letter of Credit

Description

Documentary Letter of Credit is a written undertaking given by CCB Sydney to the beneficiary on instruction from client (the applicant) to pay the beneficiary at sight, or at a determinable future date, a stated amount of money within a defined time period. This undertaking is conditional upon the beneficiary’s documentary compliance with the terms and conditions in the Documentary Letter of Credit.

Structure

Advantages

● Documentary letter of credit helps the importer significantly reduce the risk connected with the exporter not meeting its delivery obligations. In order to be paid under Letter of Credit, the exporter should deliver the goods and submit documents in accordance with all the conditions specified in the letter of credit;

● CCB Sydney’s Documentary Letter of Credit will be accepted widely by suppliers and their banks.