Standby documentary credit

A conventional documentary credit is issued to provide the seller with an undertaking of payment upon the seller's submission of documents in accordance with the terms and conditions of the credit after shipment has taken place.

A standby documentary credit, on the other hand, is an undertaking which is activated only if something goes wrong between the buyer and the seller and the expected payment does not take place. It therefore allows the seller to enforce a claim.

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Read about the international documentary credit rules (UCP 600) set forth by the International Chamber of Commerce.

Sample standby documentary credit

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International Rules

See sample

	Standby documentary credit

	A conventional documentary credit is issued to provide the seller with an undertaking of payment upon the seller's submission of documents in accordance with the terms and conditions of the credit after shipment has taken place. A standby documentary credit, on the other hand, is an undertaking which is activated only if something goes wrong between the buyer and the seller and the expected payment does not take place. It therefore allows the seller to enforce a claim.		Contact Get in touch with your local branch: Find your branch. International Rules Read about the international documentary credit rules (UCP 600) set forth by the International Chamber of Commerce. See sample Sample standby documentary credit