What are the most commonly used settlement methods for international trade enterprises?

What are the most common settlement methods used by international trade enterprises?

Common settlement methods are as follows:

1) remittance, including wire transfers, letter remittances and bill transfers

2) collection, including D/P (payment delivery) and D/A (acceptance delivery)

3) letter of credit

Settlement methods: letter of credit settlement methods, remittance and collection settlement methods, bank guarantee letters, a combination of various settlement methods, Letter of credit settlement letter of credit (letter of credit) referred to as L / C) way is the bank credit involved in the settlement of international goods purchase and sale price product. Its emergence not only to a certain extent to solve the contradiction between buyers and sellers do not trust each other, but also enable the two sides in the use of letters of credit settlement of payments in the process of obtaining the convenience of bank capital financing, thereby promoting the development of international trade. Therefore, is widely used in international trade, so that today's international trade in a major settlement. Letter of credit is a conditional payment commitment made by the bank, that is, the bank according to the applicant's request and instructions, issued to the beneficiary of a certain amount, and within a certain period of time with the prescribed documents commitment to pay the written file; or bank in the amount, date and documents under the conditions of the applicant would like to buy the beneficiary on behalf of the issuance of a bill of exchange certificate of guarantee. Belong to the bank credit, the use of reverse remittance method. B, remittance and collection settlement remittance and collection is commonly used in international trade payment settlement. C, bank guarantee letter bank guarantee letter (banker's letter of guarantee), abbreviated as L / G), also known as the bank guarantee, bank guarantee, or referred to as a letter of guarantee, it refers to the bank should be entrusted with the application of the beneficiary to open a written certificate to ensure that the applicant performs the contract in accordance with the provisions of the bank is responsible for reimbursement of the payment otherwise. D, the combined use of a variety of settlement in the international trade business, a transaction settlement, you can only use a settlement (usually so), but also according to the needs of, for example, different trading commodities, different trading objects, different trading practices, will be more than two ways to combine the use of settlement, or conducive to facilitating the transaction, or is conducive to the safe and timely collection of foreign exchange, or is conducive to the proper handling of foreign exchange payments. Commonly used in different forms of settlement: letter of credit and remittance combined, letter of credit and collection combined, remittance and bank guarantees or letters of credit combined

International trade enterprise settlement of the common ways of that kind?

1, letter of credit settlement

2, remittance and collection settlement

3, bank guarantee letter

4, a combination of settlement

Settlement of international trade A, letter of credit settlement letter of credit (letter of credit) referred to as L / C) is the way the bank credit involved in the settlement of the price of international trade. The product of the international sale of goods price settlement. Its emergence not only to a certain extent to solve the contradiction between the buyer and seller of mutual distrust, but also enable the two sides in the use of letter of credit settlement of goods in the process of obtaining the convenience of bank capital financing, thereby promoting the development of international trade. Therefore, is widely used in international trade, so that today's international trade in a major settlement. Letter of credit is a conditional payment commitment made by the bank, that is, the bank according to the applicant's request and instructions, issued to the beneficiary of a certain amount, and within a certain period of time with the prescribed documents commitment to pay the written file; or bank in the amount, date and documents under the conditions of the applicant would like to buy the beneficiary on behalf of the issuance of a bill of exchange certificate of guarantee. Belong to the bank credit, the use of reverse remittance method. B, remittance and collection settlement remittance and collection is commonly used in international trade payment settlement. a, remittance remittance, also known as remittance, is the payer through the bank, the use of a variety of settlement tools will be remitted to the payee of a settlement. Belong to the commercial credit, the use of smooth remittance method. Remittance business involves four parties: the payer (remitter remitter), the payee (payee or beneficiary), remittance line (remittingbank) and remittance bank (payingbank). Among them, the payer (usually the importer) and remittance line (entrusted to send remittances to the bank) between the contractual relationship between the remittance line and remittance line (remittance line of the agent bank) between the agency contractual relationship. In the remittance business, it is necessary for the remitter to fill in the remittance application to the remittance line, the remittance line is obliged to send a payment letter to the inward bank according to the instructions of the remittance application; the inward bank receives the accountant to show the letter of entrustment, it is obliged to the payee (usually for the exporter) to solve the payment for the goods. However, the remittance line and the remittance bank does not belong to their own fault and the loss caused by (such as payment instructions in the mail lost or delayed, etc., resulting in the payee can not or late receipt of payment) is not responsible, and remittance to the remittance line on the work of the negligence is not liable. b, collection (collection) collection is the exporter in the shipment of goods, issued to the importer as the payer of the remitter's bill of exchange (accompanied by or not with the payment of freight documents), entrusted to the export of the bank through its branch in the imported or agent bank on behalf of the importer to collect payment for goods a settlement method. It is a commercial credit and adopts the reverse remittance method. The parties involved in the collection method are the principal, the collection bank, the collection bank and the payer. Principal (principal), that is, issued a bill of exchange entrusted to the bank to foreign payers to collect the goods on behalf of the person, also known as the drawer (drawer), usually for the exporter; Collector (remitting bank) that is, accept the exporter's entrusted on behalf of the bank for the collection of the export of the bank; Collecting bank (collecting bank), that is, accepting the entrustment of the Collecting bank on behalf of the payer Collecting bank (collecting bank), that is, accepting the entrustment of the collecting bank on behalf of the payer to collect the payment of the imported bank; payer (payer or drawee), the bill of exchange on the payer that is the collection of the payment of the payer, usually for the importer. Among the above parties, between the principal and the collecting bank, and between the collecting bank and the drawee bank, there is a principal-agent relationship, while there is no legal relationship between the payer and the drawee bank, and the payer pays according to the contract of sale. Therefore, whether the principal can receive the payment depends entirely on the credibility of the importer, the collection agency and the collection agency are not responsible. In handling the collection business, the principal to the collection agency to submit a collection of power of attorney, in the power of attorney in the people out of a variety of instructions, the collection agency to the collection agency in accordance with the instructions entrusted to the payer to collect the payment of goods. C, bank guarantee letter bank guarantee letter (banker's letter of guarantee), abbreviated as L / G), also known as the bank guarantee, bank guarantee, or referred to as a letter of guarantee, it refers to the bank should be entrusted with the application to the beneficiary to open a written certificate, guarantee the applicant according to the provisions of the contract, or else the bank is responsible for the payment of debts. D, the combined use of a variety of settlement In the international trade business, a transaction settlement, you can only use a settlement (usually so), but also according to the needs of, for example, different trading commodities, different trading objects, different trading practices, will be more than two ways to combine the use of settlement, or conducive to facilitating the transaction, or is conducive to the safe and timely collection of foreign exchange, or is conducive to the proper handling of foreign exchange payments. Commonly used forms of different settlement: letter of credit and remittance combination, letter of credit and collection combination, remittance and bank guarantee or letter of credit combination a, letter of credit and remittance combination This refers to a transaction of the goods, part of the letter of credit payment, the balance of the remittance settlement. This combination of settlement methods is often used in certain primary products that allow a certain degree of maneuverability in the amount of delivery. In this regard, with the consent of both parties, the letter of credit provides for the payment of the invoice amount or prepayment of the amount of a number of percent of the goods before shipment, and the balance to be paid by remittance after the arrival of the goods at the destination (port), or the actual number of re-inspection. The use of this combination of forms, must first specify what kind of letter of credit and what kind of remittance and the proportion of the amount to be paid under the letter of credit.

What are the common settlement methods in international trade ah!

First, international trade settlement In the field of international trade settlement, in addition to remittance, collection, letter of credit as the main settlement, international factoring and bank guarantees are increasingly used in international trade and international contracting project settlement, especially bank guarantees with its high degree of credit, international trade variations of the D, PSIGHT payment method of payment, foreign trade settlement, trade settlement, international trade settlement, international trade settlement, international trade settlement, international trade settlement, international trade settlement, international trade settlement, international trade settlement, international trade settlement, international trade settlement, international trade settlement, international trade settlement, international trade settlement, international trade settlement, international trade settlement The international trade settlement mode mixed use example is that before the product is put into production, the seller to provide photocopies of export licenses and bank guarantees, the buyer with remittance to the seller to deliver part of the payment or deposit; the rest of the payment can be made in accordance with the production of the international trade settlement mode mixed use example,,, source Treasure Island network, where the terms of this letter of credit issued and prompted bills of exchange, the Bank guarantees that the bank to its out. Second, what are the settlement methods settlement methods have and characteristics in international trade International trade often occurs in the settlement of payment for goods to clear the debt relationship between buying and selling, this settlement is known as international trade settlement. International trade settlement is based on the goods transaction, goods and money as the basis of tangible trade settlement. Settlement: letter of credit settlement, remittance and collection settlement, bank guarantee letter, the combined use of various settlement methods. a, letter of credit settlement letter of credit (letter of credit) referred to as L / C) is a product of bank credit involved in the settlement of the price of the international sale of goods. Its emergence not only to a certain extent to solve the contradiction between the buyer and seller of mutual distrust, but also enable both sides in the use of letters of credit settlement of payments in the process of obtaining the convenience of bank capital financing, thereby promoting the development of international trade. Therefore, it is widely used in international trade to become. Third, commonly used in international trade settlement method Check settlement method remittance, collection and letter of credit payment characteristics and application of the remittance risk, the financial burden of unbalanced, simple procedures, less expensive. In the importer's honor reliable or with the exporter has a special close relationship with the conditions, the concept of remittance refers to the payer through the bank to the payee to send money. Types of wire transfer T, T for the main trust remittance, collection, letter of credit, bank guarantee is the current international trade settlement in the most common four ways. One of the current, in addition, if the amount is small, we must consider the cost of the problem, the letter of credit settlement of the bank charges are certainly higher, the documents require meticulous, often deductions, etc. more troublesome, but this is a small number of, back to the security is the most important. If you are a member of the team, you will be able to get the best out of the team.

Several settlement methods on international trade

1 remittance risk?

(1) remittance definition: remittance, also known as remittance, is the simplest way of international trade payment settlement. The use of remittance settlement of payments, the buyer will ship the goods to the other side, the freight documents sent by the seller to the buyer, and the buyer will be through the bank to the seller.

(2) remittance risk manifestation:?

① credit sales (O/AOpenAount): the exporter will be transmitted to the importer of goods, in the absence of payment or payment commitment, the goods will be transported to the importer of documents to the importer, so that the importer to withdraw the goods of a way of settlement. This kind of payment after goods is a kind of settlement that gives the importer larger credit and longer financing time. In this case, the exporter can get the payment for the goods, depends entirely on the credibility of the importer, once the exporter default, there will be money and goods situation. The importer, on the other hand, did not pay any payment for the goods got the goods, and can handle the goods in accordance with their own wishes.?

② Cash on Delivery: the exporter will first ship the goods, the importer received the goods and then remit the payment to the exporter. Payment on delivery can be specifically divided into consignment and sale of two kinds, in the point of time on the payment of the two have slight differences, but are exporters to the importer to provide unilateral financing channels, and the exporter has to bear the risk of importers refused to pay. In international trade practice, more than the sale of fixed way, that is, the buyer and seller signed a contract, the importer received the goods immediately after the full payment in the form of wire transfer to the exporter.

③ prepayment: the importer will first remit the payment of goods to the exporter, the exporter receives the payment of goods and then shipped to the importer's way, most often in the form of prepayment of deposits.

(3) remittance risk prevention:?

① effective credit investigation of the customer, to find out the creditworthiness of the other party, only and those who have reliable credit, decent business practices of traders using remittance settlement.

② in the prepaid transactions, the importer in order to reduce the risk of prepayment, the use of bill payment practices. The importer will remit payment to the remitting bank, and instruct the remitting bank to pay the exporter with certain specified documents and shipping documents provided by the exporter. Therefore, for the importer, more than the general remittance method of a layer of protection, for the exporter, as long as the delivery on time to pay the bill can get all the money.

For the advance deposit, generally 25-30% of the total value of the contract, or to the origin to the destination port of the transportation costs required twice or a little higher. In this way, first of all, the advance payment is not much, if the importer has a certain credit, this way will not touch its fundamental interests, so as to sympathize with the exporter's hardship and give cooperation; Secondly, the importer prepaid the goods, it is to a certain extent by the constraints, even if you want to break the contract later, but also to consider its advance payment and reluctant to perform. Back a step, even if the importer really do not pick up the goods, do not pay, the exporter can also be sold at a reduced price or other ways to deal with the loss of part of the importer's prepayment can be used to compensate for the worst result of the goods can also be shipped back all of the goods.

2 Collections?

(1) definition of collection: collection, according to the Uniform Rules for Collections, the definition of collection is as follows: collection means the processing of financial and/or commercial documents by a bank instructed to do so in order to obtain acceptance or payment, or the delivery of commercial documents against acceptance or payment, or the delivery of documents on other conditions.

(2) The manifestations of collection risk:?

① importer's credit risk and collecting bank bank risk. In the case of bad market conditions, the importer will find excuses to refuse to accept the goods and refuse to pay the payment; there may also be collusion with the collection agency, or forged collection agency fraudulent bills of lading.

② The political risk of the importing country. Importers may be due to the importing country's war riots, strikes, failure to obtain an export license, the importing country's foreign exchange management and other reasons for not being able to pay on time. These are all part of the exporter needs to consider the political risk of the country in which the importer is located.?

③ financial risk. Once the importer refuses to pay the foreign exchange collection failure, exporters even in possession of the property rights, but also have to bear the financial losses associated. Such as: the price of goods resale losses; destination port of storage, extraction and insurance costs, etc., the goods are stored for too long may be corrupt and deteriorate; really can not be resold, but also have to bear the round-trip freight, etc.

This is the first time that an exporter has to bear the financial risk.

(3) the prevention of collection risk:?

① Strengthen the credit review of the importer and the importer's bank. Detailed investigation of the customer's credit status and the reliability of the collection bank bank.

② export credit insurance to transfer the risk of export collection. Export credit insurance is a country *** to encourage and expand exports to the financial backing, the specialized insurance agencies to provide exporters to ensure the safety of its collection of a policy risk protection system, is a policy insurance business, which protects the risk of general commercial insurance companies do not want to or can not underwrite the foreign commercial credit risk or political risk.

③ Combination of multiple settlement methods, part of the payment received in advance to reduce the risk of foreign exchange collection. According to the principal-agent theory, in order to make the agent have enough incentives to automatically choose the action in favor of the principal, it is necessary to let the agent also bear part of the uncertain risk in the design of the contract, and get the corresponding compensation from this kind of risk bearing. Therefore, in order to ensure the security of the collection of foreign exchange under the collection method, the exporter can receive a certain amount of advance payment in advance, and the balance of the collection of foreign exchange by D/P spot. The proportion of the advance payment is the same as the remittance, generally 25-30% of the total value of the contract is appropriate.

3 Letter of credit?

(1) the definition of letter of credit: letter of credit, that is, by a bank in accordance with the customer's requirements and instructions or their own name, in line with the terms of the letter of credit under the conditions of the specified documents, to a third party or its designee to pay, or acceptance and payment of the beneficiary of a bill of exchange; or authorize another bank to make the payment, or acceptance and payment of the bill of exchange; or authorize another bank to negotiate. another bank to make such payment, or to accept and pay such bill of exchange; or to authorize another bank to negotiate such payment.

(2) The performance of the letter of credit risk:?

① issuing bank credit risk. Although the letter of credit is a bank credit, but it is not absolutely safe. In some countries, the establishment of the bank is not as strict as in China, and the need to have the limit of registered capital, the ownership of foreign banks are mostly private, in this case, the bank's creditworthiness is very important. It is entirely possible for importers to combine with a small or non-existent bank to commit fraud.

② Risk of hard terms of the letter of credit. In the prescribed format of the letter of credit, there are many hard terms, which constitute the basic elements of the letter of credit, such as the beneficiary, the validity period, the shipment period, the delivery date, the negotiating bank, etc., the slightest change in any one of the terms may bring trouble to the exporter.

③ soft terms of the letter of credit risk. In the letter of credit business, the importer or issuing bank may use the letter of credit only focus on the characteristics of the documents to set the "trap terms", or known as the soft terms of the letter of credit.

④ Documentary risk. The letter of credit is a kind of document sale, the implementation of the principle of payment on the basis of a single. First of all, the bank review single as long as "single has been, documents consistent" will be paid to the export side regardless of whether the actual goods in line with the requirements of the import side. Secondly, if the documents may be completely consistent, there will be inconsistent documents. For the documents do not match including two cases, UCP500 also has clear provisions: one is irrelevant does not match; Second is the name does not match. Insignificant inconsistency is that although the surface of the documents do not match the letter of credit, but can be regarded as consistent with the inconsistency, this inconsistency of the documents can still be accepted by the bank. Veritable inconsistency, that is, can constitute a refusal to accept and refuse to pay the documents do not match. Including documents do not meet the provisions of the terms of the letter of credit; documents do not meet the provisions of the UCP500; documents contradict each other in three cases. The consequences of the type of inconsistent documents is that the issuing bank lifted the documents in line with the conditions of payment responsibility, the bank letter of credit into a commercial letter of credit, but also to the importer to provide a reason for refusal to pay.

4 General?

The intricacies of international trade, due to the transaction between the two sides in different regions and countries, so it adds to the difficulties of trade settlement. Regardless of which international trade settlement methods, the most basic premise is the creditworthiness of the trading party to understand clearly, only the two sides have a good reputation, in order to promote the smooth completion of trade. In the choice of trade settlement methods, try to avoid the risk of a relatively large way, and actively use insurance or multiple settlement to offset the risk, once the use of a settlement method, as far as possible to take into account the risk of potential problems and take appropriate measures to protect their own interests.

What are the settlement methods of the enterprise trade foreign exchange business

The settlement methods of the enterprise foreign exchange business are:

1.L/C

2.D/P

3.D/A

4.T/T

The buyout business mainly includes:

1.FFTP

2.Factoring

The buyout business is mainly composed of:

2.FFTP

2.FFTP

3. p>

Financing business mainly has:

Pledged remittance

What are the several settlement methods commonly used in domestic trade transactions, and please introduce the advantages and disadvantages.

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What are the settlement tools and methods of international trade? In international trade should choose which way? Why

The main tools are: bill of exchange, cashier's check, check

Settlement methods: remittance, collection, and letter of credit payment

Characteristics and application of the situation are

Remittance: high risk, unbalanced burden of funds, simple procedures, less expensive. In the importer's honor is reliable or with the exporter has a special close relationship with the conditions, this way is conducive to the expansion of exports.

Collections: the nature of commercial credit, because on the intermediary, applicable to new products to open up the market, lagging, the importer's good reputation in the case of use.

Letter of credit: a bank credit, independent of the contract outside of a self-contained file, is a document sale.

The letter of credit is widely used in the county stage is the most important form of payment.

In actual business operations, these three ways can also be used in combination.

The gods of trade, can you say the international now commonly used several settlement methods

The common settlement methods in international trade are: remittance (including bills and wire transfers), collection, letter of credit and so on.