Payment terms that protect both sides
We put letters of credit and other documentary instruments around each trade, so the seller is paid for the cargo and the buyer pays for what was shipped.
How a cross-border trade gets paid
Trade finance is how the payment for a cross-border trade is arranged and secured. A seller wants to be sure of payment before the cargo leaves; a buyer wants to be sure of the cargo before paying. A bank instrument sits between them.
The usual one is a letter of credit: the buyer's bank promises to pay the seller once the seller presents the documents the letter asks for, such as the invoice, the bill of lading and the inspection certificate. Payment then follows the cargo and its paperwork, not trust alone.
Payment built into the contract
The payment terms are agreed with the rest of the contract, before anything is loaded.
- 01
Agree the terms
We agree the payment instrument, the documents it needs and the timing alongside the quantity, specification and trade terms.
- 02
Open the instrument
The letter of credit or other documentary instrument is put in place before the cargo is loaded.
- 03
Match the documents
Commercial, shipping and inspection documents are prepared to the exact wording of the instrument, so they are accepted when presented.
- 04
Settle
Payment is released against the compliant documents, and settlement stays transparent through to the final payment.
What each side gets from it
- Buyers pay against documents that show the cargo was shipped and inspected
- Suppliers know payment is secured before they load
- Payment terms are fixed in the contract, not negotiated while the cargo is at sea
- Documents prepared to the instrument, which avoids delays at the bank and at the port
Talk to us about terms
Tell us the commodity, the route and how you would like to pay, and we will propose a structure.