Difference between revisions of "Bank Payment Obligation or Order"
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== Definition == | == Definition == | ||
| − | '''Bank Payment Obligation or Order'''. (BPO) It is an inter-financial instrument to secure payments against the successful matching of trade data. The BPO offers the benefits of a letter of credit in a digital environment, without the drawbacks of manual processing associated with the traditional trade finance instruments. Using | + | '''Bank Payment Obligation or Order'''. (BPO) It is an inter-financial instrument to secure payments against the successful matching of trade data. |
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| + | The BPO offers the benefits of a letter of credit in a digital environment, without the drawbacks of manual processing associated with the traditional trade finance instruments. Using [[SWIFT]]'s trade services utility (TSU) or an equivalent transaction matching program, a BPO is an irrevocable undertaking given by one financial institution to another financial institution that payment will be made on a specified date after a specified event takes place. | ||
[[Category:Supply Chain Finance]] | [[Category:Supply Chain Finance]] | ||
| + | [[Category:SWIFT]] | ||
Latest revision as of 11:31, 15 June 2021
Definition
Bank Payment Obligation or Order. (BPO) It is an inter-financial instrument to secure payments against the successful matching of trade data.
The BPO offers the benefits of a letter of credit in a digital environment, without the drawbacks of manual processing associated with the traditional trade finance instruments. Using SWIFT's trade services utility (TSU) or an equivalent transaction matching program, a BPO is an irrevocable undertaking given by one financial institution to another financial institution that payment will be made on a specified date after a specified event takes place.
