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Order goods safely, receive them according to the terms of your commercial contracts and pay the seller only if he has fulfilled all of his obligations.
Import goods at a lower cost than with the documentary credit.
Provide your supplier with a guarantee of payment.
It is a less costly alternative to the export documentary credit and allows you to maintain the control of documents until the payment or commitment to pay is made by your buyer.
With the export documentary credit, the issuing bank commits itself to pay you against presentation of the stipulated documents.
