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

Billing method. Letter of credit settlement, remittance and collection settlement, bank guarantee.

A combination of various payment methods.

Types of Bills:

The bills used in international ** include bills of exchange, promissory notes, and checks, mainly using bills of exchange.

1. Bills of exchange. is a written unconditional payment order issued by one person to another person requiring the other party (the person receiving the order) to pay a certain amount of money to a person or a designated person or person holding a ticket at immediate or periodic intervals or at a time that can be determined in the future.

2. Promissory note. It is a document issued by one person to another person guaranteeing that a certain amount of money will be paid unconditionally by oneself at sight or in a foreseeable future period. Promissory notes can be further divided into commercial promissory notes and bank promissory notes.

3. Checks. It is a demand draft for which the bank is the payer. Specifically, it is a bill issued by the drawer (bank depositor) to the bank (drawee) to require the bank to pay immediately when it sees the drawer.

Common billing methods are as follows:

1) Remittance, including telegraphic transfer, mail transfer and bill transfer.

2) Collection, including DP (Documents Against Payment) and D A (Documents Against Acceptance) 3) Letters of Credit.

Our company has the right to import and export.

There are three main settlement methods commonly used now: TT (Telegraphic Transfer), DP (Collection) and L C (Letter of Credit).

International settlement can promote international transactions, serve international economic and cultural exchanges, promote international financial integration, and then prosper the entire world economy; At the same time, it can also generate and accumulate foreign exchange for the country, introduce foreign capital, rationally use foreign exchange, export funds to invest abroad, and play a role in consolidating the exchange rate of the national currency and providing the country's foreign payment capacity.

International settlement is divided into ** settlement and non-** settlement. Currency receipts and payments caused by international** and its ancillary expenses are called ** settlement; Currency receipts and payments caused by transactions other than **, such as remittances from expatriates, labor services**, overseas travel, profit transfers, fund transfers, and fees of overseas institutions, are called non-** settlements.

**Settlement is the main content of international settlement. If the international receipt and payment is directly settled through the transportation of monetary metals, it is called cash settlement; The use of negotiable instrument transfer and transfer to settle debts is called non-cash settlement or transfer settlement.

a. L/C settlement method.

Letter of credit (letter of credit) (L c) is the product of bank credit intervention in the settlement of international sales price of goods. Its emergence not only solves the contradiction of mutual distrust between buyers and sellers to a certain extent, but also enables both parties to obtain the convenience of bank financing in the process of using credit cards to settle payments, thereby promoting the development of international enterprises. Therefore, it is widely used in the international world, so that it has become a major settlement method in the international world today.

Letter of credit is a conditional payment commitment made by the bank, that is, the bank issues a certain amount of money to the beneficiary according to the request and instruction of the applicant for issuance, and promises to pay with the prescribed documents within a certain period of time; Or the bank is willing to underwrite a letter of guarantee for the beneficiary's bill of exchange on behalf of the applicant under the condition of stipulating the amount, the date and the matching period and the documents. It belongs to bank credit and adopts the reverse exchange method.

b. Remittance and collection settlement methods.

Remittance and collection are the most commonly used payment settlement methods in the world.

a. Remittance t t

Remittance, also known as remittance, is a settlement method in which the payer uses various settlement tools to remit the money to the payee through the bank. It belongs to commercial credit and adopts the method of forward exchange. There are four parties involved in the remittance business:

The payer (remitter), the payee (payee or beneficiary), the remittingbank and the payingbank. Among them, there is a contractual relationship between the payer (usually the importer) and the remitting bank (the bank that entrusts the outward remittance), and there is a ** contractual relationship between the remitting bank and the remitting bank (the ** bank of the remitting bank).

When handling the remittance business, the remitter needs to fill in the remittance application form to the remittance bank, and the remitting bank is obliged to issue the payment letter to the remitting bank according to the instructions of the remittance application. After receiving the power of attorney for accounting, the remitting bank is obliged to pay the payment to the payee (usually the exporter). However, the remitting bank and the remitting bank shall not be liable for any losses caused by no fault of the remitting bank (such as the loss or delay of the payment order in the mail, etc., resulting in the inability or delay of the payee to receive the payment), and the remitting bank shall not be liable for the negligence of the remitting bank.

b. Collection (Collection) d p (document against payment) d a (document against acceptance).

Collection is a settlement method in which the exporter issues a remitter's bill of exchange (with or without shipping documents) with the importer as the payer after the goods are shipped, and entrusts the bank at the place of export to collect the payment on behalf of the importer through its branch or bank at the place of import. It belongs to commercial credit and adopts the reverse exchange method.

1. LC: It is guaranteed by bank credit, and the issuing bank has the first payment responsibility, as long as there is no discrepancy in the documents submitted for negotiation, the bank must unconditionally pay the full amount within n days after seeing the order, regardless of whether the applicant (buyer) wants the goods.

2. DP is a document against payment. After delivery, we prepare the negotiation documents and hand them over to the customer's bank through our bank. The customer's bank will remind the customer that the documents have arrived, and the goods will be shipped after the customer has paid.

3. DA is the document of acceptance, which also refers to the submission of documents to the customer's bank through our bank. The difference is that customers only need to accept our documents, they can take the original documents, and pay when due.

4. TT is a telegraphic transfer (the documents are generally mailed directly by us to customers without a bank). If we use the telegraphic transfer payment method for the customer, the general practice is that the customer pays 30 in advance, and the other 70 in general insurance is that after the goods are loaded on the ship, the customer pays with the original bill of lading faxed by us, and then mails the whole set of original documents. Sent to the customer upon receipt of payment.

International ** is a combination of letter of credit settlement, remittance and collection settlement, bank guarantee, and various settlement methods.

1. L/C settlement.

L/C settlement refers to the settlement in which the payment unit hands over the money to the bank in advance, entrusts the bank to sign the L/C, notifies the opening bank of the non-local payee to transfer it to the payee, and the payee delivers the goods in accordance with the settlement conditions stipulated in the contract and the L/C, and the payee immediately pays the payment on behalf of the payer. It is mainly used for commodity transactions and labor services between units**. The use of L/C settlement, the payee and the payer must sign a contract, the letter of credit is divided into two types: telemail and mail, by the payment unit to choose to use.

2. Remittance. Remittance refers to a payment method in which the payer takes the initiative to remit the money to the payee through the bank. A remittance business involves four basic parties: the remitter, the remitting bank, the remitting bank or the disbursing bank, and the payee.

In general, the remitter is the importer, the remitting bank is usually the bank of the import, the receiving bank is usually the bank of the export, and the payee is the exporter.

3. Bank guarantee letter.

Bank guarantee letter, abbreviated as L G), also known as bank guarantee, bank guarantee, or simply letter of guarantee, it refers to a written certificate issued by the bank to the beneficiary at the application of the principal to ensure that the applicant performs the contract according to the regulations, otherwise the bank is responsible for repaying the debt.