Draft
A draft is a written order for the payment of a specified amount of money, typically used in international trade. Drafts can be sight drafts, payable upon presentation, or time drafts, payable at a future date, facilitating secure payment transactions between buyers and sellers.
Related glossary terms
Letter of credit (L/C)
Letter of credit (L/C) is a bank-issued guarantee that assures a seller payment once specific shipment and documentation conditions are satisfied by the buyer.
Commercial Invoice
Commercial invoice is the document used to declare cargo value, parties, and terms for customs. Learn required fields, duties impact, and common mistakes.
Advising bank
An advising bank notifies the seller of a letter of credit's terms on behalf of the issuing bank. It confirms the LC's authenticity for the trade transaction.
Collect On Delivery (COD)
Collect On Delivery (COD) is a payment term where the consignee pays for goods at delivery. Learn when COD applies in freight and how carriers manage it.
