Deferred Payment Credit

Deferred Payment Credit

A letter of credit that provides for payment at a future date. Banks, importers, and exporters commonly use it to ensure secure future transactions. For example, a buyer might need 90 days to pay, so the seller ships the goods, and the bank guarantees payment after 90 days.

Entities: Banks, Importers, Exporters, Buyers, Sellers.
Examples: Commercial transactions, International trade agreements, Supplier negotiations.
Numeric Values: 30 days, 60 days, 90 days (common deferred payment periods).
Significant Instances: Import/export transactions, Supplier agreements, Trade financing.
Verbs: Guarantees, Ensures, Facilitates.