MISS FOREIGN TRADE

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Open account

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Characteristic
Open account occurs when a seller ship the good and all the necessary shipping and commercial document directly to a buyer, who agreed to remit payment of the invoice back to the seller after receiving the documents

Advantages
Saving time for both exporter and importer Not much involvement of banks Safe for importer

LOGO

I am not too old !

Not a clumsy girl !

I am beautiful and talent !

Im also a rich princess !

Miss Documentary Credit

About myself
Issuing bank Customers

Advising bank The beneficiary

Lcs Characteristics
1. Negotiability
LC are often negotiable

To make a LC negotiable: the LC must include an unconditional promise to pay

Lcs Characteristics
2. Revocability
A revocable LC : may be revoked or modified for any reasons and can not be confirmed
A irrevocable LC : may not be revoked without the agreement of the banks and the buyer

Advantages of LC
1. For Importers
Allows the importer to avoid or reduce prepayment

Reduce the risk connected with the seller not meeting its delivery obligations
Structure the payment plan in the contract according to the importer's interests

Advantages of LC
2. For Exporters
Reducing the production risk in case the buyer cancels or changes his order The buyer cannot refuse to pay due to a complaint about the goods

Reduce the risk of non-payment for delivered goods

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Bills for collection

Miss. BC

Definition
main information of Bill for collection

Types of collections

Clean collection Documentary collection

Trade collections
Exporter
Draw a bill of exchange

Overseas buyer

the exporters bank in the importers country

forwarded

Documents

Bills for Banks are collection I intermediaries

Clean collection
Clean collection
Financial documents

Simple

In favor of importers (delivery and payment are independent )

Documentary collection

Financial documents

Documentary collection
Commercial documents
( shipping documents, document of title,etc)

the documents of title to receive the goods after all

safer as the importer has to pay in return of

ADVANCE PAYMENT
+ The customer sends money first to the exporter. + The exporter checks that the money has been received and then sends the goods to the customer. + Being used if there is more demand than supply for that kind of commodity.

AP
ADVANTAGES

safest method of payment for the exporter

time saving

Comments of consultant

Contests result

Thank you for your attention!