PRACTICAL GUIDE · 3 MIN READ
Draw the commercial sequence
Identify the buyer, seller, goods, shipment milestones and payment terms. Mark when documents become available and where the business must commit cash.
Name the risk
A payment risk is different from a performance obligation. Before discussing an LC, guarantee, SBLC or documentary collection, explain the commercial concern the instrument is intended to address.
Align the evidence
Review contracts, purchase orders, invoices and shipping evidence for consistency. Bring the commercial sequence and the supporting file together before the bank discussion.
Keep the institution’s role clear
Banks determine whether they can provide an instrument, under what terms and with what requirements. Advisory preparation helps organise that discussion; it is not an issuance or credit commitment.
General information to help prepare a business discussion. The relevant institution determines its requirements, approvals and product terms.
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