In international trade, Exporters and Importers often use promissory notes in combination with letter of credits especially when deferred payment terms have been granted. The promissory Note is a document within which the issuer (maker) gives an unconditional promise to […]
The bill of exchange is a document within which one party ( the drawer) gives the order to another (the drawee) to pay unconditionally a sum of money at a given place and date, for goods or services received. By […]
Forfaiting is a financing method whereby the forfaiting company purchases a payment receivable at its face value (invoice value) minus costs which are composed of a discount and a risk premium. The existence of payment receivables can be […]
A letter of credit is by nature, a tool that protects exporters from the non-payment risk. As developed in our article which details the process of a letter of credit , if you require a commitment from a confirming bank […]