Bill of Lading

In trade, a bill of lading is a document confirming that a transportation company has received goods from the seller for shipment and the document confirms the description and quantity of goods, and their destination. It is vital in the payment chain in trade finance: an exporter or seller receives a bill of lading from the transportation company as goods are handed over or consigned. The seller thenpasses it to its bank, which in turn exchanges the Bill of Lading for payment from the the importer’s bank which presents it to the importer for payment.. The importer finally presents the bill of lading to the transportation company in order to take delivery. The bill of lading confirms that a carrier has received the goods for shipment. It is also a receipt for the merchandise turned over to the carrier, and states the destination of the goods.