Import Documentary Credit

Solutions for importers

Import Documentary Credit

By issuing a Documentary Credit, HSBC Armenia will undertake, on your behalf, to make payment to your supplier against presentation of compliant documents.

Import documentary credit

Product feature

An Import Documentary Credit is a commitment given by your (the buyer’s) bank, to the seller (exporter), that they will make payment upon presentation of a pre-agreed, specified set of documents.

Your needs
  • You do not want to make payment without evidence that your supplier has shipped goods and submitted documents specified by you
  • Your supplier wants payment assurance from world-class financial institution
  • Your supplier needs additional assurance of payment before shipping goods
Benefits to you

One of the most popular methods for settling international trade transactions

Documentary Credits are one of the most popular methods for settling international trade transactions because they are honored throughout the banking system and offer security to both buyer and seller. The seller wants security of payment; the buyer wants an assurance that payment will be made only after dispatch of the specified goods.

Documentary Credits can be tailored to your business needs

Each Documentary Credit can be tailored to your requirements governing shipping, delivery, insurance and quality inspection.

Providing security for your supplier

Since payment is guaranteed by HSBC Armenia, trading on Documentary Credit terms provides security for your supplier giving you additional leverage to negotiate more favorable pricing and longer payment terms.

Opportunities to organize your import transactions efficiently

While using Import Documentary Credits you will have opportunities to finance your transactions efficiently through exercising deferred payment Documentary Credit options, where you will be able to pay after receipt of the goods, and short-term trade loans for buyers.

Expand your business in unfamiliar territories

Payment under Import Documentary Credit will only be made if your supplier has complied with all the terms and conditions prescribed in the Documentary Credit. As a result, a Documentary Credit can help you expand your business and deal with new business partners in unfamiliar territories.

Providing flexible financing opportunities for your exporter

With Import Documentary Credit the exporter’s bank can make payment to the supplier without having to draw down on supplier’s credit facilities or pledging security with the bank.

Documentary Credits are handled in accordance with the rules published by the International Chamber of Commerce (ICC).

Have a question?

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Note: In case of discrepancies between the Armenian and English versions of this page, the Armenian version shall prevail.

Last updated on: 22/09/2015 15:00