Documentary Trade Finance

From Open Risk Manual

Definition

Documentary Trade Finance. It is a term that covers a large element of the traditional trade finance market relating to tools such as documentary credits, documentary collections, and guarantees.

They are normally governed by rules published by the International Chamber ofCommerce (ICC) (e.g., UCP 600 for the letters of credit (or later version) or URC 522 for Collections or URDG 758 for guarantees).

Although not procurement finance instruments in their own right, these tools can be incorporated into procurement finance transactions or used alongside procurement finance instruments.

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