documentary remittance的意思|示意

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Documentary remittance is a common method of payment when companies or individuals make international purchases or send money abroad. It typically involves paying a bank or other financial institution to transfer a set amount of money to a recipient in another country.

A documentary remittance involves creating a document called a draft, which is essentially a written promise from the sender to the recipient that states the sender agrees to pay a certain amount. The draft is then sent to the recipient's bank, and the bank will then pay the recipient the agreed-upon amount.

The draft may be accompanied by a set of documents called a bill of exchange. These documents specify the terms of the transaction, such as the amount of money to be transferred and the due date for payment. The bank will then assess the documents, and if everything is in order, it will accept the remittance and make payment to the recipient.

The benefit of documentary remittance is that it provides an official written record of a transaction and its associated documents, so both sender and recipient can easily trace any disputes that may arise. Plus, in the case of international payments, it is seen as a reliable and secure payment mechanism.

However, documentary remittances do take some time to process. This is because all documents must be thoroughly checked and approved by the bank, which can take several days. Also, the sender may incur transaction fees, depending on the institution and/or destination country.