Glossary items beginning with: d
Documents against acceptance. The commercial documents will be released to the drawee against acceptance of the term Bill of Exchange accompanying them.
Documents against payment. The documents will be released to the drawee against payment.
Days of Grace:
The quote of a Forfaiter will often state a number of days of grace which reflect the number of days’ delay normally experienced in the transmission of payments applicable to the country risk involved.
Deferred Letters of Credit:
A credit calling for payment at a determinable future date without requiring a draft to accompany the documents.
The rate by which the face value of a negotiable instrument is discounted. The discount rate is generally calculated as either a discount to yield or straight discount.
Discount to Yield:
Expresses the discount rate as a true interest cost, on a per annum basis, in most cases, maturities exceeding 180 days will be subject to semi-annual compounding. The Discount to Yield calculation is the yield a present value will achieve as it reaches its future value (face value) at maturity.
The purchase of accepted term Bills of Exchange or other instruments of payment at a discount to allow for the cost of interest on the funds until the bills mature.
Where documents presented to a bank under a letter of credit do not conform with the terms of the credit.
Refusal to accept or pay a Bill of Exchange.
One which entails commercial documentation and is concerned with goods.
See Bill of Exchange.
The party on whom a Bill of Exchange is drawn. In a collection, it is the buyer.