DOCUMENTARY REMITTANCE. Documentary remittance is a type of payment or collection whereby the exporter gives instructions to remit documents to the buyer’s bank abroad. The latter shall then present the documents to the buyer, against payment in cash or acceptance of a bill of exchange on commonly agreed terms. Documentary remittance is either for imports or for exports. For imports: the buyer is a First Bank’s client and is expected to settle the invoice issued by a seller abroad.

For exports: you export goods and give instructions to the First Bank to obtain the payment of your invoice.

DOCUMENTARY CREDIT (L/C) The documentary credit is a form of commitment taken by a bank either for itself or on behalf of a third party (originator) to pay to a beneficiary (service provider, seller, supplier…) a given amount of money, upon presentation, within a set time, of documents agreed on in the sales contract. The documentary credit is used to settle import invoices. Documentary credit may be either for import or for export.Documents required for a Documentary credit:
- a letter of application for a documentary credit
- a pro forma invoice for which the L/C is sought
- constitution of the provision
- a decision by the credit committee, where the client has not constituted a provision
- the SWIFT out-going message
- actual payment in case payment is on demand
- acceptance commissions in case of payment by bill of exchange
- copy of the bill of lading.
- copy of the original invoice
- the reversed provision.