Negotiation/ Discount of Export Bills under LC

Do you need to obtain financing upon presentation of the L/C documents?

Bills Negotiation / Bills Discounting allows a seller to obtain financing and receive immediate payment upon shipment of goods, based on trade transaction documents. The bank will negotiate when purchasing a Sight Bill of Exchange and discount when purchasing a Usance Bill Of Exchange.

Transactional process:

1. After shipping the goods, the seller presents the shipping and/or financial documents to the bank.
2. The bank checks the documents (if accompanied by a Letter Of Credit), purchases them, and credits the net proceeds to the seller's account.
3. The bank then sends the documents to the buyer's bank and claims reimbursement.