Documentary remittance
 
Documentary remittance is a type of payment or collection whereby the exporter instructs his bank to remit documents to the importer’s bank.  The latter shall present the documents to the buyer, either against payment in cash or acceptance of a bill of exchange on commonly agreed terms. Documentary remittance is either for imports or exports.  As regards REMDOC upon import, the importer is a First Bank client and has to settle the bill of the exporter who is abroad. Concerning REMDOC upon export, you are the exporter and you instruct First Bank to receive the payment of your invoice. 
 
 Documentary credit
 
 Documentary credit is any commitment taken by a bank on behalf of a third party (originator) or for itself to pay a beneficiary (service provider, seller, supplier…) a given amount of money upon presentation, within a set time, of documents agreed upon in the contract. Documentary payment is linked to the payment of import-related bills. CREDOC can be upon import or export.
 
Documents required for a documentary credit (CREDOC)
  • An application letter for a documentary credit
  • A pro forma invoice for the credit
  • The constitution of the provision
  • A decision of the credit committee where the client has not constituted a provision
  • The SWIFT out-going message
  • Actual payment  if the payment is expected
  • Acceptance fees for payment by bills
  • A copy of the bill of lading
  • The copy of the original of the invoice
  • Reversing provision