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0_public:finance_and_economic_models:payment_methods:negotiation_credits [2025/01/27 20:06] – removed - external edit (Unknown date) 127.0.0.10_public:finance_and_economic_models:payment_methods:negotiation_credits [2025/01/27 20:06] (current) – ↷ Page moved from payment_methods:negotiation_credits to 0_public:finance_and_economic_models:payment_methods:negotiation_credits pointnm
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 +====== Negotiation Credits ======
  
 +A negotiation credit is the purchase by the nominated bank of drafts (drawn on a bank other than the nominated bank) and/or documents under a complying presentation, by advancing or agreeing to advance funds to the beneficiary on or before the banking day on which reimbursement is due to the nominated bank.[(:ref:baft-tfg-lc)]
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 +>  In a negotiation credit scenario, the nominated bank (a bank appointed by the issuing bank to handle the LC transaction) purchases <wrap hi>drafts (documents representing the amount to be paid) and/or documents from the beneficiary</wrap>.