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, although not generally used, recourse for a seller in a documents against acceptance collection 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.
Related Questions
- What recourse is available to the seller in the event that a buyer does not honor a sight draft presented under a documents against payment collection?
- What recourse is available to a seller if a buyer does not pay a time draft that the buyer has accepted?
- What is stamp duty? Does the buyer or the seller pay it?
