PAYMENT IN INTERNATIONAL TRADE

Purchase, sale, or exchange of goods and services across national borders

The transmission of some commonly accepted liquid asset in exchange for goods, services, or non liquid assets across national borders

It means the exporter ships the goods to the buyer and just wait till a fixed date as agreed in the contract for payment from the buyer.

A document issued by a bank, whereby the bank replaces the importer as the paying party. Exporter is basing his risk of getting paid on the bank rather than on the importer. The bank will have to be reimbursed by the importer.

A letter of credit that may be canceled at any moment without prior notice to the beneficiary

A letter of credit that cannot be canceled nor amended without agreement of all parties

A letter of credit under which the documents are forwarded to the importer's bank, while sight draft is presented at a later future date

A letter of credit permitting the beneficiary to receive a sum prior to shipment

A letter of credit that can be utilized by someone designated by the original beneficiary

A letter of credit calling for renewed credit to be made available when the issuing Bank informs the beneficiary that the buyer has reimbursed the issuing bank for the drafts already drawn