Explain the diference between clean credit and documentary credit.

Explain the diference between clean credit and documentary credit.

Credits that only require clean draft, i. e. draft not accompanied with shipping documents for payment are clean credit. They are generally used in non-trade settlement or in payment in advance by means of the L/C. Most of the credits used in international trade are documentary credits,. e. credits that requires shipping documents to be presented together with the draft.