Documents Against Payment (D/P)

Documents Against Payment (D/P) refers to a payment method in international trade. The buyer receives shipping and title documents only after paying the accompanying draft. Examples include bills of lading, commercial invoices, and insurance certificates. The seller ships goods and provides documents to their bank. The bank routes documents to the buyer’s bank, which releases them upon payment. This method mitigates risk for the seller, ensuring payment before the goods exchange hands.