Back-to-back Documentary Credit

Why is this payment method right for you?

A capital efficient payment method
Allows you to use an existing Documentary Credit as collateral
Helps to protect your control over relationships with trading partners

Other benefits

A safe and convenient way to settle trade transactions
Keeps buyer and supplier details confidential so you can maintain your commission income
Reduces payment risk by dovetailing sourcing and sales transactions to avoid discrepancies

How does a Back-to-back Documentary Credit work?

Back-to-back Documentary Credits (DCs) are used by traders, middlemen and buying agents. A Master Documentary Credit is issued by your buyer and is payable to you. Based on this master, you issue another DC, known as a back-to-back DC, to purchase goods from your supplier.

Other useful information and services

Disclaimer: The above information is provided for your reference only without legally binding over any party, and does not construe any form of legal, financial or other professional advice. Trade and supply chain transactions may be subject to credit approval. Other restrictions, including specific country regulations, may apply. Foreign currency exchange rates may apply to certain trade transactions.