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Documentary credit
A documentary credit, also called "letter of credit", is a means of payment allowing your company to safeguard your import and export transactions worldwide.
Import Documentary Credit
Characteristics:
As a buyer, you want to be sure about the quality of the products imported, as well as the delivery times. On your instruction, ING Luxembourg commits itself to make payment to your supplier on presentation of the documents stipulated in the documentary credit.
Your Benefits as Buyer:
- you determine the documents required in the transaction (invoices, transport document, etc.);
- a documentary credit allows you to make payment only if the documents stipulated are compliant;
- you can refuse non-compliant documents; and
- you guarantee payment for the goods to your supplier and thus strengthen your commercial relationship.
Export Documentary Credit
Characteristics
As a seller, you want to be certain that settlement shall take place within the expected period once the goods have shipped. ING Luxembourg guarantees your agreement.
Your Benefits as Seller:
- a documentary credit allows you to receive your payment or payment commitment on the due date, subject to you sending the compliant documents that are requested in the documentary credit to your customer; and
- you thus safeguard your exports and reinforce your commercial relationship.
The Documentary Collection
A documentary collection guarantees your international transactions. The documents proving that goods have been shipped are only delivered against payment or a bill of exchange for a forward-based transaction. ING Luxembourg acts as intermediary on your behalf by sending and remitting the documents and then collecting settlement.
Import Documentary Collection
Characteristics
As a buyer, you want to be certain that your imported goods shall ship properly.
Your Benefits as Buyer
- a documentary collection offers you the advantage of security;
- ING Luxembourg informs you when the documents arrive. You can check if these comply with your commercial agreement before paying or accepting a bill of exchange; and
- you do not have to put your cash or credit lines to work during what can prove a long period.
Export Documentary Collection
Characteristics
As a seller, you want to be certain that your goods shall ship properly.
Your Benefits as Seller
A documentary collection offers you security over the delivery of the goods to your buyer against payment or acceptance of a bill of exchange.
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