International Payments

What recourse is available to a seller if a buyer does not pay a time draft that the buyer has accepted?

Protest actions are available on documents against acceptance collection transactions, just as they are on documents against payment collection transactions. Another possible source of recourse for a seller in a documents against acceptance collection transaction that is not generally used in a documents against payment collection transaction is to ask the buyer to have its bank "avalize" the draft that the buyer has accepted. This makes the buyer’s bank a co-signer on the draft and in so doing acts to guarantee the buyer’s performance.

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