A documentary letter of credit is an irrevocable undertaking of the issuing bank to make payment to beneficiary specified in the letter of credit, against the presentation of the documents required in compliance with the terms and conditions of the letter of credit.
The e bank guarantee is an irrevocable commitment of the issuing Bank under which it undertakes to pay a specific amount to the beneficiaryspecified in the letter of guarantee upon a claim and under the conditions as set in the letter of guarantee.
Documentary collection represents sending of documents from the sellers’s bank to the buyer’s bank and the documents are presented to thebuyer against payment or acceptance, unless otherwise is agreed in the documentary collection.
