Documentary business
Documentary business represents one of the main tools of the documentary payment system.
Documentary letter of credit (DLC) is the most common way of payment for goods and services in commercial relations. It represents the bank’s obligation to provide the seller with payment from the L/C once the terms of the L/C are met. Documentary letters of credit likewise bank guarantees are usually used if business partners do not know each other and they need to eliminate the business risk to a minimum.
