Telegraphic Transfers are best used as a fast and secure way for overseas wire transactions, and the primary method of payment for Mercator’s clients.
Letter of Credit is a document issued by a bank or a financial institution, which guarantees the clients payment will be received on time and for the correct amount. The bank or financial institution issuing the LC will cover the payment in the event that the client is unable to make the payment on the agreed date. Letters of Credit also protects the buyer because no payment obligation occurs until the goods have been shipped or delivered as promised.
Documents against Acceptance, the exporter instructs a bank indicating that the shipping documents and transferring title to goods should be delivered to the importer only upon the buyer’s acceptance of the attached drafts and the payment has been made. The buyer may only clear goods through customs once they have the original shipping documents and Bill of Lading in hand.
Documentary Collections (D/C) is a transaction where the exporter entrusts the collection of a payment to the remitting bank (exporters bank), which sends the shipping documents and Bill of Lading to a collecting bank (importers bank), along with payment instructions.