Documentary credit glossary

Documentary credit is one of the most secure payment methods in international trade, offering the exporter a conditional payment guarantee from the importer’s bank. There are a number of specialist terms used in connection with documentary credits which may be confusing if you have not used documentary credits before.

An explanation of relevant terms and expressions connected with documentary credits can be found here.
 

Glossary

Documentary credit term Explanation
About  Used in connection with amounts or quantities it means +/- 10%
Acceptance  An accepted draft
Advise To forward a documentary credit or an amendment to a documentary credit to the beneficiary
Advising bank The bank (other than the issuing bank) that forwards the documentary credit to the beneficiary
Air Waybill (AWB) Air transport document
Applicant The party on whose behalf a documentary credit is issued
Approximately See About above
At sight Payment on a sight basis (no credit time)
Available with The bank where the documents must be presented
Beneficiary The party in whose favour the documentary credit is issued
Bill of lading Sea transport document

Want to know more?

Guarantee glossary

If you are interested in guarantee terminology, see the guarantee glossary.

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Collection glossary

If you are interested in collection terminology, see the collection glossary.

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