Trading Process

Payment and Trading Process

At Silver Trading, we conduct all transactions with transparency, professionalism, and adherence to internationally recognized trade and banking standards. Each shipment is handled under secure financial instruments and clear contractual frameworks to protect all parties involved and ensure seamless delivery of goods across borders.

Letters of Credit (LC)

The Letter of Credit is one of the most trusted and widely used mechanisms for international commodity transactions. It provides assurance to both trading partners by involving reputable banks that guarantee payment upon successful fulfillment of the agreed shipment and documentation conditions.

Process Overview:

1. A Letter of Credit is issued by the client’s financial institution and transmitted to Silver Trading’s advising bank.

2. Once confirmed, the LC defines all required documents, delivery terms, and payment conditions.

3. Silver Trading proceeds with shipment, ensuring all goods and documentation meet the terms outlined in the LC.

4. After dispatch, the required documents — including the bill of lading, commercial invoice, and SGS inspection report — are presented through the banking channel.

5. Upon verification of compliance, payment is released through the respective banks.

6. The authorized consignee receives the shipment documentation and takes delivery of the goods.

Key Advantages:

● Internationally recognized and secure.

● Ensures financial protection for both trading entities.

● Facilitates access to trade financing and working capital.

Documentary Collections (D/C)

Documentary Collections provide a more simplified and cost-effective alternative to Letters of Credit while maintaining formal banking oversight. In this method, banks act as intermediaries to manage the transfer of documents and funds, without directly guaranteeing payment.

Process Overview:

1. Shipment is executed, and export documents are submitted to Silver Trading’s bank.

2. The documents are forwarded to the client’s bank with clear payment or acceptance instructions.

3. The client’s bank releases the documents once payment is made or a bill of exchange is accepted, depending on the agreed terms.

4. Upon settlement, funds are transferred securely through the banking channel.

Main Options:

● Documents Against Payment (D/P): Documentation is released only after immediate payment.

● Documents Against Acceptance (D/A): Documentation is released after acceptance of a time draft for deferred payment.

Advantages:

● Lower banking fees compared to LCs.

● Suitable for established trade relationships.

● Maintains banking transparency and traceability.

Trade Terms and Responsibilities

All transactions at Silver Trading follow internationally accepted Incoterms (such as FOB, CFR, and CIF). These define the division of responsibilities, costs, and risk management across each stage of the shipment — including transport, insurance, customs clearance, and delivery.

This ensures that every contract clearly outlines obligations and risk points, guaranteeing operational clarity and smooth logistics coordination.

Commitment to Secure and Transparent Trade

Through strategic partnerships with leading international banks, certified inspection agencies such as SGS, and trusted global freight forwarders, Silver Trading guarantees that every transaction is executed with full transparency, traceability, and compliance.

Our payment processes are designed to protect the interests of all trade partners, ensuring that each delivery — whether cocoa, coffee, or agricultural commodities — is handled with integrity, precision, and professionalism.