Briefly describe the basic characteristics of credit between buyers and sellers.

A: The basic characteristics of buyer's credit:

(1) Importers generally use buyer's credit to import capital goods instead of raw materials and consumer goods;

(2) The capital goods exported by the country providing the buyer's credit are limited to the goods manufactured in that country;

(3) The loan only provides 85% of the transaction amount;

(4) The loan is repaid in installments, 5 years in rich countries, 8.5 years in medium countries and 10 years in poor families.

Basic characteristics of seller's credit:

(1) The export seller's credit is mainly used to solve the cash flow difficulties faced by domestic exporters in delaying payment to sell large-scale equipment or contracting foreign engineering projects. It is a medium-and long-term loan, usually with a large loan amount and a long loan term;

(2) General preferential interest rates;

(3) Combined with export credit insurance.