Back-to-back DC

Why is this payment method right for you?

• A capital efficient payment method
• Allows you to use an existing Documentary Credit as collateral
• Helps to protect your control over relationships with trading partners

Other benefits

• A safe and convenient way to settle trade transactions
• A more flexible payment option than Transferable Documentary Credits
• Keeps buyer and supplier details confidential so you can maintain your commission income
• Reduces payment risk by dovetailing sourcing and sales transactions to avoid discrepancies

How does a Back-to-back Documentary Credit work?

Back-to-back Documentary Credits (DCs) are used by traders, middlemen and buying agents. A Master Documentary Credit is issued by your buyer and is payable to you. Based on this master, you issue another DC, known as a back-to-back DC, to purchase goods from your supplier.

Other useful information and services

• How Documentary Credits Work
• Documentary Credit Comparison Table
• Export Services
• Trade Finance