The documentary credit is a transaction in which an issuing bank agrees on behalf of its client importer to settle to a third exporter, with a deadline agreed between the parties, a specific amount against the delivery of documents strictly in accordance with the agreement these last two justifying the value of goods and shipment.

Beneficiaries:

Any importing company 

Types of loans:

• Unconfirmed irreversible: The importer's bank undertakes to honor the payment date agreed with the exporter (subject to the receipt of appropriate documents). His commitment can only be challenged when agreed by both parties.
• Confirmed irreversible: The bank of the importer and exporter confirm that they will both honor to pay the documentary credit incurred by the agreed date subject to the presentation of compliant documents. This agreement can only be challenged by both parties. The exporter is thus insured against the risk of default of the importer and also against the risk bank and country risk of his client.