(银行信誉.ppt

Unit 10. Methods of International Settlements International money transactions refer to the movement of funds from one country to another. The main reason for moving funds from one country to another is the settlement of debts resulting from international trade. The methods of payment chiefly include remittance, collection and L/C. If the payment is made by remittance, it is called favorable exchange (顺汇), by which the buyer makes the payment by bank of his own accord; if by collection or L/C it is adverse exchange (逆汇), by which the exporter takes the initiative to gather payment from the buyer. To choose a method for the payment of the goods, you should consider the credit standing of the buyer. Different methods of payment mean different credits. Bank credit (银行信誉) is more reliable than commercial credit (商业信誉). So, we should choose the right method for the safe settlement of the payment. I. Remittance A. Definition Remittance is to deliver the payment of the goods to the seller by bank transfer. In remittance, there are four parties involved: the remitter, the beneficiary, the remitting bank and the paying bank. The remitter remits the money to the beneficiary as it is required by the contract concluded between them. And when the remitter comes to the remitting bank, he fills an application form for the bank to effect the payment, which upon remittance will be binding upon the remitting bank. And the paying bank pays the beneficiary because it is the branch bank or correspondent bank of the remitting bank in the country of the seller. Remittance is mainly used for payment in advance (预付货款) , open account (赊销) for small quantity of goods, commission, sundry charges, etc. (a) If it is used for payment in advance or cash with order, it will place the seller in an advantageous position. (b) If for delivery first and payment afterwards, it will place the buyer in a favorable position. Note:Remittance uses commerc