Packing list

Document listing the contents of a consignment of goods.

May be called for on a letter of credit.

Payee

Party to whom payment is due.

Paying bank

In a letter of credit, bank that is nominated to make payment to the beneficiary upon presentation of complying documents.

Political risk

Risk that political instability in the buyer's country will interfere with a buyer's ability to meet payment obligations.

Postal receipt

Transport document issued by a postal authority. Not a document of title.

Pour aval

Written on a bill of exchange when it is avalised by a bank.

Presentation

In a collection, presentation of documents by a bank to a buyer for payment or acceptance. In a letter of credit, presentation of documents by a seller to a bank for payment, acceptance or negotiation.

Presentation period

On a letter of credit, number of days allowed between shipment of goods and presentation of documents to a bank.

Presenting bank

In a collection, bank that presents documents to a buyer for payment or acceptance.

Prime letter of credit

In a back-to-back letter of credit transaction, the original letter of credit that is offered as security for another letter of credit (second letter of credit).

Principal

Party who instigates a collection, i.e. the seller.

In a collection, all banks act for the principal.

Promissory note

Financial document in which the buyer agrees to make payment to the seller at a specified time.

Protest

Legal procedure that may be administered by a notary public, evidencing non-payment or non-acceptance of a bill of exchange. Useful in support of a subsequent civil action against the defaulter.

In a collection, the presenting bank may be instructed to arrange for this.