Date post: | 02-Dec-2014 |
Category: |
Economy & Finance |
Upload: | luispachon |
View: | 1,759 times |
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INTERNATIONAL PAYMENT METHODS
INTERNATIONAL PAYMENT METHODS
• The decision of which method of payment must be used depends on:
• The risk assumed by the parties.
• The cost of the transaction.
MOST USED METHODS• Open account
• Direct transfer
• Cheque
• Bank instruments (subject to documents)
• Letter of credit
• Collection
• Bill of exchange
CONDITIONS OF THE LETTER OF CREDIT
• Confirmed
• Notified
• Pay the bearer at sight
SECURITYLETTER OF CREDIT
COLLECTION
BILL OF EXCHANGE
PAYMENT ENGAGEMENT
CHEQUE
TRANSFER
0 25 50 75 100
Security of payment Risk of unpayment