Types of documentary credits
The applicable security criteria will differ depending on the form of the sight payment credit.
Under a deferred payment credit, the issuing bank and any confirming bank undertake to effect payment on a specified later date subject to the presentation of the stipulated documents on or before the expiry date of the documentary credit.
Under an acceptance credit, on presentation of the stipulated documents and a draft drawn on the issuing or the nominated bank, the exporter receives a bill of exchange undertaking that payment will be effected on the designated due date.
Under a negotiation credit, the exporter receives an advance or an agreement to advance the funds from the negotiating bank on presentation of the stipulated documents and, where applicable, a draft.
Documentary credits in transit trade
A documentary credit is also an appropriate means of meeting the security
requirements of the various parties in the transit operations of the international trade.
UBS offers you different products of special types of credit.
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