| When you export your goods or services and use a documentary credit as the method of payment, you will obtain a number of advantages:
- the demand on the importer becomes a demand on the issuing bank (importer's bank)
- enhanced security of payment at the agreed time
- enhanced security that the order received will not be cancelled or changed without your agreement
- improved liquidity as payment often can be made shortly after shipment
- the possibility of extending security to subcontractors through the documentary credit
- the possibility of financing
You must be aware that a documentary credit is security for your payment only if you are able to comply with all its requirements and conditions. It is therefore important that you study the documentary credit thoroughly when you receive it.
See General guidelines for useful advice about the completion of your documents. | | |