Financing international trade HERES Documentary credits Aompany which sell fos or services 1 other counts known 38a exporter, A ‘Sinupany hich buys progact om ther counts sealed an importer, Payment or sported products nal by documentary credit, a called 2 ler of erat. Thins 3 ‘wetten promise bya hank to pay a cereain amount to the sll, thin 9 xed pei, Irhen the bank receives ition rom the buyer Documentary srs have sanded for, They genealy con sa shor deergcon ofthe goods 1m ls of shipping documents roquirl o ohn payment ace € belo) Final Sipping dae sm final dav (or expeation dae for presenting the documents othe bark Documentary credits are sly ierevorable, meaning that they cannot be changed unless allthe partes involved agree Irevocable credits gurantee tat the hank which ‘exablises the eter of credit wll pay the eller the deus ae presented witha che spre ie HERD is oF exchange Anaer meth of payment i bil of exchange o deaf. This is. payment demarl ‘wet or dave up by an exporter, trating an iporterto pay 2 speci um of ‘mney ata fire date. When he bl aes the importer pay Che more ets bank, ‘vi eranfrs the money fo the exporter rk, This ak then pays We money tte porter afer deducing is cata A ak may agree to endorse or acep a ill of exchange before it matures. To endorse 4 bulls to guaramte to pay il ee Duper of goods dacs no. bls endorsed by a wall owen bank, the expore can elie ats dBcoure the Bansal markers. The discount represents the iterate bayer ofthe hl cold ave exmed bere the date of | ‘urchase andthe bis natiy dat, When the bil matures the buyer rccves the full sure This way the exporter sts most ofthe moe medal nd docs have weit or the baer to pay the BES +p documents spurts have to prpare a numberof dacamenes og with the shipment or tampons of sade. So minis ngdetect cities seree ne onan dante conan genne oat