Search icone
Search and publish your papers
Our Guarantee
We guarantee quality.
Find out more!

An overview of various modes of payment

Or download with : a doc exchange

About the author

 
Level
Expert

About the document

Acepublisher .
Published date
Language
documents in English
Format
Word
Type
term papers
Pages
4 pages
Level
Expert
Accessed
0 times
Validated by
Committee Oboolo.com
0 Comment
Rate this document
  1. The different means of payment
  2. The intrinsic safety of the instrument
  3. Cash flow
  4. Check
    1. The circuit of a check
  5. The bill (trafficking)
  6. Promissory notes
  7. Payment instruments specific to export
    1. Documentary credit
    2. The mechanism
    3. Elements of DOC

The intrinsic safety of the instrument and the safety of the procedure: The commercial acceptability; the proximity between the rational seller and buyer and the cost. While some procedures are inexpensive, others are very expensive. If the transaction amount is small, sophisticated payment procedures may not be used. Appropriate techniques allow rapid repatriation of funds in the seller's country, while others may take much longer.

[...] The mechanism: Vendor buyer as there is a contract of sale between the two. The buyer provided instructions to his bank (issuing bank), which sends the letter of credit by SWIFT to the advising bank (the correspondent bank is the issuing bank in the seller's country). The advising bank and the issuing bank have an account with each other as well as a key computer system that allows them to exchange coded messages. When the vendor receives notification of the advising bank and the letter of credit (SWIFT), he must verify that the conditions specified in the letter of credit are consistent with the contract. [...]


[...] By definition, trafficking is an instrument of payment at the completion of a term, contrary to the check which is payable at sight. Legal framework: The convention that applies to trafficking is the Geneva Convention of 7 June 1930. It establishes the principle that the law that is applicable to trafficking at the international level is that of the country where the commitment to pay has been contracted (usually the law of the buyer). Guarantees offered by the bill: It must be "accepted", or signed. [...]

Similar documents you may be interested in reading.

The new age of the US economy (Anton Brender and Florence Pisani)

 Economics & finance   |  Economics   |  Term papers   |  01/10/2011   |   .doc   |   6 pages

Most rated for finance

Financial analysis of Microsoft

 Economics & finance   |  Finance   |  Case study   |  01/19/2012   |   .pdf   |   30 pages