Financial policy in exports - International payments - Payment against documents

3 important questions on Financial policy in exports - International payments - Payment against documents

What is payment against documents?

This is an agreement between buyer and seller whereby payment is made after the buyer is offered the documents which cover the underlying delivery, with the assistance of a bank.

What is a remitting bank?

This is an intermediary bank in documentary collections that forwards a seller's shipping documents to the collecting-bank, and the payment in the opposite direction.

Name two basic methods of payment against documents.

  1. Documents against payment (D/P)
  2. Documents against acceptance (D/A)

The question on the page originate from the summary of the following study material:

  • A unique study and practice tool
  • Never study anything twice again
  • Get the grades you hope for
  • 100% sure, 100% understanding
Remember faster, study better. Scientifically proven.
Trustpilot Logo