A plain-language guide to common terms used by UAE exporters, importers, trading houses and finance teams when documents control payment and delivery.
An LC, or letter of credit, is a bank commitment to honour a presentation when the stipulated documents comply with the credit. Export teams also search for this as a bank LC, export LC, import LC or trade finance LC.
“Documentary credit” is the expression used in the ICC’s UCP 600 rules. In normal trade conversations, letter of credit and documentary credit often refer to the same instrument.
Read the official letter of credit overview ↗UCP 600 is the current ICC framework commonly incorporated into documentary credits. The credit itself determines the required documents, wording, dates, quantities and presentation conditions.
CREDEXA keeps the effective LC and amendments connected to document preparation and review. The responsible bank still performs its examination.
View the ICC UCP 600 introduction ↗CAD commonly means cash against documents. It is associated with documentary collection workflows in which banks exchange shipping documents against payment or acceptance. Unlike a letter of credit, the banks generally do not guarantee payment or examine the documents for LC compliance.
CREDEXA’s current public workflow is centred on letter of credit document preparation. A CAD or documentary collection requirement should be discussed with Sales before assuming the same checks apply.
Compare documentary collections and letters of credit ↗A trade finance specialist helps a business understand payment instruments, documentary requirements, bank processes and transaction risk. CREDEXA describes itself as a digital trade finance specialist because it structures LC document preparation and source-linked review; it does not replace a bank, legal adviser or the professionals executing the transaction.
The ICC publishes eleven Incoterms® 2020 rules. They allocate specified delivery responsibilities, costs and risks between seller and buyer. The selected rule should appear with its named place, port or point and the intended edition.
Official ICC Incoterms® guidance ↗EXW · FCA · CPT · CIP · DAP · DPU · DDP
FAS · FOB · CFR · CIF
CREDEXA carries the selected Incoterm and named location from confirmed case data into supported documents and checks consistency where applicable.
Record the three-letter rule, named place or port and stated edition as they appear in the effective source.
Carry the approved trade term into invoices and other supported documents when required.
Compare the term and named location across the LC, confirmed data and prepared set. Selecting the correct commercial rule remains a professional decision.
Sales@credexa.me