Documentary encashment is an instruction of the seller to his bank for acceptance of the payment from the buyer in return for delivery of the goods and submission of other documents and transfer of such amount to the seller’s account . Once the seller delivers the goods to a designated location, he prepares the documents (invoice, waybill, insurance policy, etc.) and submits the full package, accompanied with encashment instructions, to the bank. Seller’s bank then releases, through the buyer’s bank, the documents to the buyer in return for the payment of the amount shown in the encashment instructions.
In comparison with the LC, this category of documentary transactions provides a lower assurance and is used where the level of trust between partners is high and political and economic regime in trading countries is stable. Thus, shipment, delivery, submission of documents and payment related delays may become the source of certain risks (including, currency risks, risk of loss of payment capacity by the buyer, etc). Therefore, in comparison with other financial instruments, expenses are lower, while formalization procedures are simpler.
Please review our Bank charges for encashment services: |
|
Type of the service |
Rate of charge
(Note: rate is fixed irrespective of the currency of the transaction) |
Review of documents to be dispatched |
0 . 2 %,
min. AZN 50 |
Release of documents for payment or acceptance |
0 , 2 %
min. AZN 50 |
Release of documents without payment or acceptance |
0 ,1 %
min. AZN 50 |
Return of unpaid documents |
AZN 50 |
Chance or cancellation of the encashment |
AZN 50
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Additional information:
Please send us your queries related to this service. Approach any branch or office of the Bank or call Information center 145.
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