Difference between revisions of "Deferred Payment"
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Latest revision as of 14:32, 13 February 2020
Definition
Deferred Payment. It is a payment at a set time after the shipment or the presentation of shipping documents, as opposed to immediately or at sight.
A distinction is drawn between a letter of credit that is available for deferred payment and one that is available for acceptance of time drafts in that no drafts are involved under a deferred payment letter of credit. Without accepted drafts, the beneficiary's ability to sell, or discount, its right to payment to another lender or investor is restricted.