1. Sight Draft
Explanation

2. Parties Involved
Seller
(Creditor)
Buyer
(Debtor)
Debtors Bank

3. Documents Involved Invoice
Bill of Lading (ie Document with all details about the goods being sold... Must be presented to the transporter of the goods so that they can release them to the buyer)
Sight Draft(Document supplied by the seller – addressed to the buyer)
All of these documents are the SELLERS documents

4. Sight Draft - How it works
1. Sends all the documents
Seller
BANK
PAYS the seller
on behalf of seller
Releases Bill of Lading to Buyer on Proof of payment
Transporter
Buyer
4. Sends Bill of Lading to transporter
5. TRANSPORTER RELEASES GOODS TO BUYER