Documentary Credit

Documentary Credit is a payment method that guarantees the seller the receipt of payment and the buyer the receipt of the goods.

What is Documentary Credit ?
Documentary Credit is a method of payment that protects both the seller and the buyer. It guarantees the seller that they will receive payment after the goods have been delivered, and it ensures the buyer that the goods will be delivered to them. Usually, the seller requests documentary credit. Upon issuing the documentary credit, the buyer also requests confirmation documents like the bill of lading or certificate of origin from the seller.