"Presentations: Financing in foreign trade" have content includes payment terms in foreign trade, foreign trade, financing techniques, procedures of payment against documents. | Topic: FINANCING IN FOREIGN TRADE GROUP 19 GUESSING QUIZ CASH IN ADVANCE OPEN ACCOUNT LETTER OF CREDIT BILL OF EXCHANGE Group 19: FINANCING IN FOREIGN TRADE OUTLINE Cash in advance LC Draft, BE Documents used Financing techiques Open Account Financing techiques Summary Thanh Nguyen Van FINANCING IN FOREIGN TRADE PAYMENT TERM IN FOREIGN TRADE An exporter can avoid credit risk because payment is received before the ownership of the goods is transferred. Cash in advance Letters of credit (LCs) are one of the most secure instruments available to international traders. An LC is a commitment by a bank on behalf of the buyer that payment will be made to the exporter Letter of Credit A draft may be written with virtually any term or condition agreeable to both parties. A draft is a check that is drawn on a bank’s funds and guaranteed by the bank that issues it. Draft, Bill of Exchange An open account transaction is a sale where the goods are shipped and delivered before payment is due Open Account Thanh Nguyen Van The seller requires receipt of payment from the buyer before shipping goods. Payment may be made by wire-fund transfer from the buyer’s bank to the seller’s bank, or by company check, credit card, or other agreed upon means. Method Usual Time of Payment Goods available To Buyer Risk to Seller Risk to Buyer Comments CASH IN ADVANCE Before shipment After payment None Complete - relies on seller to ship exactly the goods expected, as quoted and ordered Seller's goods must be special in one way or another, or special circumstances prevail over normal trade practices CASH IN ADVANCE Thanh Nguyen Van LETTER OF CREDIT LC’S DEFINITION 01 STIPULATION OF PAYMENT CLAUSE IN A CONTRACT 02 PROCEDURES OF PAYMENT AGAINST DOCUMENTS 03 Nguyen Truong Nguyen LETTER OF CREDIT A written commitment to pay, by a buyer's or importer's bank (called the issuing bank) to the seller's or exporter's bank (called the accepting bank, negotiating bank, or paying bank). A letter of credit . | Topic: FINANCING IN FOREIGN TRADE GROUP 19 GUESSING QUIZ CASH IN ADVANCE OPEN ACCOUNT LETTER OF CREDIT BILL OF EXCHANGE Group 19: FINANCING IN FOREIGN TRADE OUTLINE Cash in advance LC Draft, BE Documents used Financing techiques Open Account Financing techiques Summary Thanh Nguyen Van FINANCING IN FOREIGN TRADE PAYMENT TERM IN FOREIGN TRADE An exporter can avoid credit risk because payment is received before the ownership of the goods is transferred. Cash in advance Letters of credit (LCs) are one of the most secure instruments available to international traders. An LC is a commitment by a bank on behalf of the buyer that payment will be made to the exporter Letter of Credit A draft may be written with virtually any term or condition agreeable to both parties. A draft is a check that is drawn on a bank’s funds and guaranteed by the bank that issues it. Draft, Bill of Exchange An open account transaction is a sale where the goods are shipped and delivered before payment is due Open .
