K&H documentary collection
A classic international payment arrangement whereby the exporter submits the shipping documents along with a collection order for prompt or deferred payment.
K&H letter of credit
A letter of credit is an irrevocable undertaking by the opening bank to make certain payments when the correct documents are duly presented to it in time. It is a payment promise by a bank, the consequence of a commercial transaction.
K&H purchase of receivables without recourse (letter of credit discounting)
In the case of export letters of credit with deferred payment, it is possible, on a case by case basis, to discount the value of the document for the seller. This means that the Bank buys the receivables without recourse, and the seller receives the funds immediately.