1 Sight. The sight credit enables the beneficiary to be paid immediately upon presentation of documents which comply with its terms. However, it may be available either with a bank in the beneficiary’s country or with the issuing bank. Obviously, the beneficiary prefers payment locally;

firstly because of the time factor and secondly because a local bank can assist him in obtaining payment from the issuing bank if his documents are found to be out of order.

Although sight credits may call for a bill of exchange, it is often waived if not presented. The significance of the sight bill of exchange will be discussed in a later chapter relating to negotiation.