Trade
Documentary Collection vs Letter of Credit
A letter of credit adds a bank's promise to pay; a documentary collection only routes documents. How the two compare on risk, control, cost and paperwork.
Trade
Trade
What is a Documentary Collection in Trade Finance?
In a documentary collection, banks pass shipping documents to the buyer against payment or acceptance, without promising to pay. How D/P and D/A work.
Trade
What is UCP 600? The Rules Behind Letters of Credit
UCP 600 is the ICC rulebook a letter of credit can adopt by reference. What it covers, when it applies, and how it sits beside US law.
Trade
Standby Letter of Credit vs Bank Guarantee
A standby letter of credit and a bank guarantee both pay on a demand, not on proof of default. How they differ in rules, wording and US bank practice.
Trade
Confirmed vs Unconfirmed Letter of Credit
Confirmation adds a second bank's promise to pay. What it covers, what it does not, and when an exporter's bank may be asked to confirm a credit.
Trade
Trade Finance Instruments Explained: A Plain Guide
Letters of credit, standbys, guarantees, collections and bonds: what each trade finance instrument does, who carries the risk and which rules apply.