Documentary Trade Credits & Payments

Internet Trade Facilities has the capability to issue and negotiate non-bank Documentary Trade Credits (credits) and Documentary Trade Payments (collections) for third parties.

GBM200DTC Documentary Trade Credit 21 July 2019

DTC200 The Documentary Trade Credit (DTC)

ITF provides an alternative method for a commercial bank issued international documentary letter of credit. The Documentary Trade Credit is issued and negotiated by ITF instead of a commercial bank. The funds used to support a Documentary Trade Credit are housed with an established escrow company. The required supporting funds in escrow must be 110% of the face value and in the same currency of the Documentary Trade Credit to be issued. The documentary requirements and rules for reimbursement conveyed by a Documentary Trade Credit are the same as a bank-issued letter of credit under the UCP. The Documentary Trade Credit offers the same functionality for usance, assignment and transfer as a bank-issued letter of credit. The Documentary Trade Credit is issued for self-liquidating trade transactions and not for standby credits. The funds supporting the Documentary Trade Credit in escrow are used to buy the transport document, invoice, packing list, and supporting documents.

The cost to the exporter is zero because the document set negotiation fee is included in the importer’s issuing service fee.

Copy of 110.4 DRAWING - GBM201DTP Documentary Trade Payment 2 Aug 2019

DTP201 Documentary Trade Payments (DTP)

Internet Trade Finance provides a Documentary Trade Payment as an alternative to a commercial bank documentary collection. The Documentary Trade Payments follows the same procedures as a Documentary Trade Credit, except the funds, are held by the applicant (buyer) instead of being placed with escrow services prior to shipment and negotiation.