Bill Avalisation Service:

Bill Avalisation is the bank’s undertaking on behalf of the importer, to honour, payments of Bills of Exchange from the supplier. This undertaking is similar to that of a Letter of Credit and hence provides the same comfort to the supplier but with an easier structure for the importer. This is applicable to both domestic and international trade.

BUYER’S BANK receives import documents with a draft drawn on the Importer. Upon acceptance, BUYER’S BANK guarantees the draft, releases import documents to the importer and forwards the draft to the supplier’s bank, thus enabling fast access to funds by the supplier.
Under Bill Avalisation Service aalphaa can handed over the documents to importer’s bank either in D/P or in D/A.

D/P (Documents against Payment):

The delivery of documents to the importer/buyer is made only after having obtained payment. In this case importer/buyer can receive and inspect the goods only after payment of the bill. Documents against payment and cash against documents (CAD) are same terms.

D/A (Documents against Acceptance):

The delivery of documents to the importer/buyer is made only after he has accepted the bill of exchange for payment on the determinable future date.