What factors should be considered when choosing an international settlement method

Updated on educate 2024-08-04
7 answers
  1. Anonymous users2024-02-15

    In fact, like domestic sales, it is necessary to examine the comprehensive strength and credit of customers. The main thing is to keep your money safe.

    Old customers can take care of it appropriately, and new customers must be careful, especially when it comes to Nigeria and many other countries, if the first cooperation is best to ask for prepayment.

    In addition, if the amount is small, it is necessary to consider the cost, the bank charges for the settlement of the letter of credit must be higher, the document requirements are also detailed, and there are often deductions and other troubles, but this is a decimal, and the safety of the payment is the most important.

  2. Anonymous users2024-02-14

    The international settlement method is a specific way to settle the claims and debts arising from international and non-** transactions through currency receipt and payment. Under the non-cash settlement system, according to the different transmission directions of settlement instruments and the direction of capital flow, the basic methods of international settlement can be divided into two types:

    1. Reverse exchange is also known as the "ticketing method". That is, the creditor takes the initiative to issue the bill and entrusts the domestic foreign exchange bank to collect a certain amount of money from the foreign creditor through its foreign affiliate bank or ** bank. Since the direction of transmission of settlement instruments (such as bills) is opposite to the direction of capital flow, it is called reverse exchange.

    The settlement of letters of credit, unlicensed export collections and non-** bills under international ** are all reverse exchange.

    2. Shunhui is also known as the "remittance method". The debtor (payer) shall submit the money to the domestic foreign exchange bank on its own initiative, and entrust the bank to remit the money to the foreign creditor (payee) through its foreign correspondent bank or ** bank. Since the delivery direction of the settlement instrument (such as the payment power of attorney, etc.) is the same as the direction of the flow of funds, it is called Shunhui.

    This is the case for all remittance transactions conducted by banks.

  3. Anonymous users2024-02-13

    Letter of credit, a letter of credit is actually a written document issued by the bank in accordance with the customer's instructions and requirements to make a conditional commitment to payment. Generally, it can be divided into irrevocable documentary credits.

    and revocable documentary credits, which are basically irrevocable letters of credit. The L/C business needs to involve the issuing applicant, the issuing bank, the advising bank, the beneficiary, the negotiating bank and the paying bank.

    Collection, collection is the exporter after loading the goods, issue a bill of exchange, and then together with a full set of shipping documents, entrust the bank at the place of export, through it in the import branch or the first line to collect a form of payment from the importer, collection is also known as single collection, according to the different conditions of the bill, can be divided into payment documents.

    and documents against acceptance.

    Remittance, remittance mainly refers to the payer in accordance with the agreed time and conditions, through the bank to hand over the money to the payee a settlement method, and credit is closely related, the current remittance can be divided into mail transfer, wire transfer and bill transfer. Telegraphic transfer is the most commonly used method.

    Further information: International settlement is also known as "international settlement". Claims and debts incurred between countries due to economic, political and cultural exchanges through international currency receipts and payments.

    It was liquidated. Monetary receipts and payments arising from international ** and its ancillary expenses are called ** settlements; Transactions made from outside of **, such as remittances from expatriates.

    Monetary receipts and payments caused by labor services, overseas travel, profit transfer, fund allocation, and expenses of overseas institutions are called non-** settlement.

    **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. In pre-capitalism.

    During the period, international settlements were mainly carried out through cash settlements.

    International settlement is divided into ** settlement and non-** settlement. Classification basis: the reasons for the occurrence of creditor's rights and debts.

    **Settlement, mainly including bills - capital documents, remittance methods, collections, letters of credit, letters of guarantee, guarantees**.

    Forfaiting and other businesses.

    Non-** settlement, mainly including non-** remittance, non-** letter of credit, traveler's checks, non-** bills and collection, credit cards and foreign currency exchange, etc.

    Depending on whether the settlement currency used is freely convertible or not, it can be divided into the following three categories:

    1) The Multilateral International Settlement System (IMSS) is characterized by the use of freely convertible currencies.

    2) A regulated bilateral system of international settlements, characterized by the use of non-freely convertible currencies.

    3) The multilateral settlement system of the Rubber Department of the World of Regional Economic Blocs.

    According to the different tools and means of payment, they can be roughly divided into four categories:

    1) Cash Currency Settlement. This is the original settlement method, that is, the buyer pays the money in one hand, the seller delivers the goods in one hand, and the money and goods are cleared in both hands, which is usually called cash on delivery, which is rarely used now.

    2) Bill settlement.

    3) Voucher settlement.

    4) Telecommunications settlement.

  4. Anonymous users2024-02-12

    1. There are three types of international settlement, namely letter of credit, collection and remittance.

    1) A letter of credit is a written document issued by a bank in accordance with the instructions and requirements of the customer and a conditional commitment to payment. Generally, there are two types of Documentary Credits: irrevocable Documentary Credits and revocable Documentary Credits. The latest UCP600 stipulates that banks cannot open revocable letters of credit.

    Note: Irrevocable letters of credit are commonly used).

    2) Collection refers to the settlement method in which the exporter issues a bill of exchange together with the shipping documents and entrusts the bank at the place of export to collect money from the importer through the collecting bank at the place of import. Collection, also known as single collection, is divided into payment and acceptance according to different conditions of submission.

    3) Remittance refers to the settlement method in which the payer delivers the money to the payee through the bank at the agreed time and conditions. Remittance is divided into mail transfer, wire transfer, and bill transfer.

  5. Anonymous users2024-02-11

    Answer]: a, b, c, e

    International settlement methods include remittance, collection, letter of credit, and bank guarantee.

  6. Anonymous users2024-02-10

    The main forms of international settlement include cash payments, letters of credit, collections and wire transfers. Here's a closer look at them.

    1.Cash payment

    Cash payment refers to a method in which buyers and sellers pay in cash directly after the transaction is closed. It is one of the simplest and most basic ways of international settlement, without any intermediaries or banks involved. Since there is no third party to supervise, there are many hidden dangers of safety leakage.

    At the same time, cash payment also needs to consider the exchange of currency, which also brings a lot of difficulty to the actual operation.

    2.Letter of credit.

    A letter of credit is a financial instrument in which a bank pays the exporter on behalf of the importer and promises to make the payment if the importer meets the specified conditions. In this way, the L/C bank acts as a third party to guarantee the transaction, which greatly reduces the transaction risk. Therefore, L/C is one of the most commonly used settlement methods in the international market.

    3.Collection.

    Collection refers to the way in which the exporter hands over documents such as bills of exchange to the bank, and the bank settles the payment to the importer on behalf of the exporter. This method is simpler than a letter of credit, but there are also some transaction risks. At the same time, the collection also needs to consider the exchange of the purchase price, and in some cases there may be a loss.

    4.Wire transfer.

    A wire transfer is a method of transferring money for goods through a network of banks. Compared to other settlement methods, wire transfers are faster and simpler, and because they are conducted through the banking network, the transaction risk is greatly reduced. However, wire transfers need to take into account factors such as exchange rate fluctuations, and their fees are relatively high.

    It should be noted that different settlement methods may have different regulations and standards in different countries and regions. Therefore, it is necessary to carefully understand the local laws and regulations when choosing an international settlement method. In addition, different settlement methods will also have different fees and interest rates, which need to be weighed on a case-by-case basis.

    In general, the choice of which settlement method to choose should be based on actual needs and risk tolerance. While choosing, it is also necessary to consider a variety of factors such as exchange rate fluctuations, legal regulations, and the economic situation of the country in which the transaction is traded.

  7. Anonymous users2024-02-09

    What are the characteristics of international settlement business?

    Correct answer: (1) International settlement must be carried out in accordance with international regulations and international practices; (2) international settlement is conducted in convertible currencies; (3) International settlement is mediated by bank accompaniment and behavior; (4) International settlement is based on international **; (5) The international settlement is more complicated than the domestic settlement.

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