In SBLC/BG markets, the most expensive mistake is paying fees before anything bank-verifiable happens. Upfront models shift risk to the receiver, invite sunk-cost pressure, and reward messaging rather than delivery. Pay-on-Delivery (PoD) flips those incentives: parties are compensated against milestones that a bank can confirm—not screenshots, not promises.
1) What “Delivery” Should Mean
- Bank-to-bank validation: confirmations through verifiable channels; no redacted letters, no unverifiable MT prints.
- Staged checkpoints: RWA ➝ escrow condition met ➝ MT760 readiness ➝ final settlement.
- Reciprocity: each step mirrors obligations and timelines on both sides.
2) Upfront vs. Pay-on-Delivery
Upfront models pay for intent; PoD pays for progress. Receivers keep leverage until the provider crosses objective checkpoints. When combined with AML/KYC discipline and clear non-binding language, PoD reduces disputes and shortens cycles with serious counterparties.
3) Practical PoD Structure
- Non-binding outline: roles, steps, timelines; obligations activate only upon reciprocal confirmations.
- Escrow logic: funds release on objective evidence (e.g., authenticated RWA, readiness for MT760).
- Bank-grade documentation: avoid ambiguous terms; preserve receiver protections.
- Audit trail: dataroom access, sign-offs, and immutable logs for each step.
Need a bank-friendly pack? See our SBLC Programs and Documents.
4) Red Flags to Avoid
- Any request for fees before a bank-verifiable step.
- “Proofs” that cannot be verified directly with a bank contact.
- Pressure to bypass compliance or use one-sided DOAs.
5) Receiver-First Checklist
- Non-binding communications until reciprocity and bank validation.
- Escrow with objective conditions; no discretionary releases.
- Defined RWA scope, MT760 readiness, and settlement timelines.
- Clear exit ramps if counterparties miss milestones.
6) Bottom Line
PoD aligns incentives with delivery. If your use case requires structuring, we’ll prepare a clean, verifiable pathway with disciplined risk control—without surrendering leverage. Introduce your case and we’ll respond with a non-binding outline and precise checkpoints to close.
Note: This article is informational and non-binding. Execution requires reciprocal confirmations and bank-level validation.