Documentary credits are considered one of the most common methods in the fields of international trade and financing, as they guarantee both the exporting and importing parties their rights if they adhere to the agreed upon conditions, through the mediation of banks that assume responsibility according to the specified conditions and procedures, as banks issue pledges to pay if they guarantee the receipt of documents. Within the agreed upon terms.

Documentary credits are considered a guaranteed means for sellers to obtain the price of the goods within the scope of credit from the banks and not from the buyer. They guarantee that he receives the value of the goods in exchange for submitting documents conforming to his terms. The seller also obtains the value of the goods immediately upon submitting the shipping documents without waiting for the buyer to receive them.