ICC Trade Finance Basics
Category: Get Paid & Manage Payment Risk
Industry BodyFreemium
Visit resource ↗What it is useful for
ICC context for letters of credit, guarantees, collections, and trade-finance rule families.
Helpful terms: Letter of CreditA bank undertaking to pay the seller when presented documents comply exactly with the LC terms, shipment dates, values, descriptions, and required certificates., TT PaymentA telegraphic transfer or bank wire used to pay a trade counterparty directly, often split into deposit and balance milestones tied to production, inspection, shipment, or documents., Open AccountA credit arrangement where the seller ships or delivers first and the buyer pays later under agreed invoice terms such as net 30, net 60, or another due-date rule.
Guidance
Best used for: Choosing payment-risk controls before accepting LC, collection, guarantee, or open-account terms.
Watch out for: Execution details require bank, legal, document, and counterparty confirmation.