In letters of credit, refers to the availability of documents in exchange for payment of the amount stated in the letter of credit. Availability alternatives are:
- By sight payment: payment on receipt of the documents by the issuing bank or the bank nominated in the letter of credit.
- By deferred payment: payment after a period specified in the letter of credit, often calculated as a number of days after the date of presentation of the documents or after the shipment date.
- By acceptance: acceptance of a draft (to be presented together with other documents) by the issuing bank or by the bank nominated in the letter of credit, and the payment thereof at maturity.
- By negotiation: meaning the giving of value by the nominate bank to the beneficiary for the documents presented subject to receipt of cover from the issuing bank.
See letter of credit; negotiation.