Issued by: Exporter (or freight forwarder on exporter’s behalf) Purpose: Request for payment from foreign buyer. Instructs buyer’s bank to collect payment; when collected it releases shipping documents to buyer. Buyer’s bank then remits to seller’s bank. Sight drafts are payable on receipt at buyer’s bank. Time drafts extend credit; foreign bank releases documents immediately, but collects payment later, for example, 30 days after receipt of draft.
