Payment against documents
Suppliers present a bill of lading to the financier; payment is released against documents. You know the goods have shipped before funds move.
- Range
- By shipment
- Term
- Per consignment
- Family
- trade
- Search
- Full market, one file
At a glance
- Shipment evidenced
- Document presentation
- Lower trade risk
- Import & export
How it works
- 1The supplier presents a bill of lading (or airway bill) to the financier.
- 2Payment is released against those documents, so you know the goods have shipped before funds move.
- 3Used by financiers and importers who will not pay on a bare invoice.
Who it’s for
- Importers who want shipment evidenced before paying
- Exporters whose buyers will not pay in advance but will pay against documents
Good to know
Documents prove shipment, not quality. Inspection clauses still have a place on higher-value cargo.
One application with QED searches the full market. That saves you running the same file around several lenders, and it avoids multiple credit searches on the business and directors. A hard search is only placed when you proceed with a chosen lender.
Documents QED will ask for
Same list as the attach-files section on the website application. Tick what you have when you apply; email the rest.
- Last published accounts (full accounts, not abbreviated)
- Latest management accounts if year-end is stale
- Last 3 months’ business bank statements
- Pro-forma invoice
- Purchase order
- Commercial invoice
- Contract of sale
- Transport document / bill of lading (if shipped)
- Buyer and supplier names and addresses
FAQ
Drawn from qedfinance.com and the way the UK market actually underwrites these facilities.
How is this different from an LC?
An LC is a bank undertaking with detailed terms. Payment against documents is a simpler presentation mechanic — often faster, with less paperwork, but less bank-backed certainty.
What documents?
Typically a bill of lading or airway bill presented to the financier. Payment is released against those documents so you know the goods have shipped before funds move.
Does this prove quality?
No — documents prove shipment, not condition. Inspection clauses still have a place on higher-value cargo.
Why not just pay by telegraphic transfer?
A plain TT is fast but puts all risk on the buyer — you may pay for goods that never ship or fail quality. An open account does the opposite and loads the exporter. Trade finance is the middle path.
Can products be combined?
Yes. Import finance is often paired with a letter of credit and then repaid from invoice finance once goods are sold on.
Ready to discuss this facility?
Start a short application and QED will help you compare the available market.
Start an applicationQED is a broker, not a lender. A low credit score can limit options with some houses; a search with us does not place a hard search on the business or directors until you proceed with a chosen lender.