Oxford Credit Banque Limited

Do you know trade finance? Yes, the documentary collection is a form of trade finance. It’s a process where the importer makes a payment to the exporters for the assembling of goods. However, it is only possible when the two parties submit the required documents to the bank. Documentary Collections is a safe tool that provides safety assurance for international trading. Hence, many business owners worldwide opt for it. Are you a novice in the world of international business? Then it is essential to know about the documentary collections. So, keep on reading. How Does The Documentary Collections Work? You can divide documentary collections into two categories. It includes: Import Documentary Collections Export Documentary Collections The exporter receives permission to ship the goods to the importer’s country after signing the contract. After that, the importer prepares documents related to the exported goods and submits those to the issuing bank.  The exporter bank then transfers ...

The payment methods in business are Letter of credit (LC), Document against payment (D/P), open account (O/A), and factoring. With all these methods, most of the items get sold. However, there are multiple options applied in business when it comes to determining which payment method is suitable as a term of sale. Well, today’s center of the discussion is Document against payment (DP) . If you are interested in reading these payment methods, read the article till the end. Document Against Payment (DP) - What Is Its Necessity? What is a Document against payment (DP)? You ask. Well, it is a payment method. People who indulge in large-scale business purchase things using this method.   Most sellers know the terms open account and letter of credit transactions, but they are not with Document against payment (DP) transactions. Well, it is not a secret. It is a less complicated method than others.  Long story short? The Document against payment (DP) is, when the supplies get transpor...

The Document against acceptance (DA) is helpful for both buyer and seller. Here, the buyer doesn’t have to make an immediate payment, as they get the opportunity of a credit period. He makes the payment depending on the maturity date of the accepted bill.  Under the Document against acceptance (DA) method, the seller delivers the goods first to the buyer. After the shipment, the seller will get all the significant documents including Invoices, Bills of Exchange, and more. So, let’s focus on the other factors of Document against acceptance (DA). The Benefits Received By the Buyers through Document against Acceptance (DA) Document against acceptance (DA) offers greater flexibility to the buyer with his cash flow and liquidity management.  The process makes him settle with the payment and goods.  When the times come to make a payment, he can sell the goods and secure the money from the debtors. The Benefits Received By the Seller through Document against Acceptance (DA) The...