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Packing Credit

Common term, especially in Asia, for pre-export finance provided against a letter of credit.


Packing List

A document showing the number and kinds of items being shipped. Must be consistent with other documents (especially under a letter of credit).



Packed at Factory


Partial Shipment

This is when a load is sent in more than one consignment. In a letter of credit, the buyer can say whether this is allowed or not allowed.


Right that entitles the patent holder, within the country that granted or recognizes the patent, to prevent all others, for a set period of time, from using, making, or selling the subject matter of the patent. 



One who is paid under L/C transaction. Drawer and payee are usually the same party.


Paying Bank

The bank nominated in the letter of credit to pay out against conforming documents without recourse.



Made under commercial L/C when the documents are received (see also time/deferred payment L/Cs). Banks pay against documents, not receipt of goods.


Payment in Advance

The buyer delivers cash to the seller before the seller releases the goods. Also called cash in advance (CAD), it may not mean exactly the same as advance payment.


Payment Terms

Open Account, Documentary Collections, Letters of Credit, Consignment, or Cash in Advance. Conditions under which buyer and seller have agreed to do business.


Payment Under Advised & Confirmed LCs

The advising bank pays when it has received funds from issuing bank and all terms and conditions of L/C have been met. Confirming bank usually undertakes the obligation to pay immediately upon determining documents conform to L/C.


Payment Under Guarantee

The beneficiary or issuing bank promises to repay the drawee bank if issuing bank rejects documents. This is a contingent credit exposure to the beneficiary (or issuing bank) which must be approved by a credit officer of the drawee bank.


Payment with Recourse

The paying party retains the right to the funds in the event that reimbursement (from another party) is not



Performance Bond (PB)

A guarantee issued by a bank, on behalf of a seller to a buyer, to support the sellers ability to perform under the contract. If the seller fails to perform in accordance with the contract the buyer can claim compensation under the guarantee.

Performance Risk

The risk that the buyer or seller will not complete the contract in accordance with their contractual obligations.


Period of Presentation

The number of days from the shipment date that the seller is allowed to present documents to the advising or issuing bank under a Letter of Credit. It is normally 21 days, although it can be shorter.

Piggyback Marketing

Arrangement in which one manufacturer or service company distributes a second company's product or service. The most common piggybacking situation is when a U.S. company has a contract with an overseas buyer to provide a wide range of products or services. Often this first company does not produce all of the products it is under contract to provide, and it turns to other U.S. companies to provide the remaining products. 


Benchmark price assessments for commodities



Purchase Order


Proof of Funds


Point of Origin

The place where goods were made.


Political Risk

In export financing, the risk of loss due to such causes as currency inconvertibility, government action preventing entry of goods, expropriation or confiscation, war, etc.



Proof of Products


Port of Discharge

The port where the vessel is off loaded and cargo discharges.


Port of Entry

A port at which foreign goods are admitted into the receiving country.


Port of Loading

The port where the cargo is loaded aboard the vessel lashed and stowed.


Postal Receipt

Transport document issued by a postal authority. Not a document of title.


Pour Aval

Written on a bill of exchange when it is avalised by a bank.


Pre-Export Finance

U.S. banking term for a loan to an exporter to finance the accumulation of materials, the manufacture, assembly, production, packaging and transport of physical goods to fulfill an export order. Commonly guaranteed by Ex-Im or SBA Working Capital Guarantee programs.



In a collection, presentation of documents by a bank to a buyer for payment or acceptance. In a letter of credit, presentation of documents by a seller to a bank for payment, acceptance or negotiation


Presentation Period

The period of time during which documents under an LC must be presented to the negotiating bank. Usually begins on “on board” date, or date of issuance of other transport documents, and runs for a stipulated number of days. If no period of days is stipulated, documents must be within 21 days of shipment, provided that documents are presented on or before the expiry date. Under no circumstances may documents be presented after the expiry date.


Presenting Bank

Bank in a documentary collection process presenting export documents to the drawee for payment.


Primary Market Research

Collection of data directly from a foreign marketplace through interviews, surveys, and other direct contact with representatives and potential buyers. Primary market research has the advantage of being tailored to your company's needs and provides answers to specific questions, but the collection of such data is time consuming and expensive.


Prime Letter of Credit

In a back-to-back letter of credit transaction, the original letter of credit that is offered as security for another letter of credit (second letter of credit).



(1) Party who instigates a collection, i.e. the seller. (2) In a collection, all banks act for the principal.


Pro-Forma Invoice

An invoice from seller to buyer outlining details of a proposed sale, containing sufficient information to enable the buyer to prepare a letter of credit application.


Promissory Note

Financial document in which the buyer agrees to make payment to the seller at a specified time.



(1) Legal procedure that may be administered by a notary public, evidencing non-payment or non-acceptance of a bill of exchange. Useful in support of a subsequent civil action against the defaulter. (2) In a collection, the presenting bank may be instructed to arrange for this.


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