Key PointsInternational trade prese

Key Points

International trade presents a spectrum of risk, which causes uncertainty over the timing of payments between the exporter (seller) and importer (foreign buyer).
For exporters, any sale is a gift until payment is received.
Therefore, exporters want to receive payment as soon as possible, preferably as soon as an order is placed or before the goods are sent to the importer.
For importers, any payment is a donation until the goods are received.
Therefore, importers want to receive the goods as soon as possible but to delay payment as long as possible, preferably until after the goods are resold to generate enough income to pay the exporter.
Cash-in-Advance

With cash-in-advance payment terms, an exporter can avoid credit risk because payment is received before the ownership of the goods is transferred. For international sales, wire transfers and credit cards are the most commonly used cash-in-advance options available to exporters. With the advancement of the Internet, escrow services are becoming another cash-in-advance option for small export transactions. However, requiring payment in advance is the least attractive option for the buyer, because it creates unfavorable cash flow. Foreign buyers are also concerned that the goods may not be sent if payment is made in advance. Thus, exporters who insist on this payment method as their sole manner of doing business may lose to competitors who offer more attractive payment terms.

Letters of Credit

Letters of credit (LCs) are one of the most secure instruments available to international traders. An LC is a commitment by a bank on behalf of the buyer that payment will be made to the exporter, provided that the terms and conditions stated in the LC have been met, as verified through the presentation of all required documents. The buyer establishes credit and pays his or her bank to render this service. An LC is useful when reliable credit information about a foreign buyer is difficult to obtain, but the exporter is satisfied with the creditworthiness of the buyer’s foreign bank. An LC also protects the buyer since no payment obligation arises until the goods have been shipped as promised.

Documentary Collections

A documentary collection (D/C) is a transaction whereby the exporter entrusts the collection of the payment for a sale to its bank (remitting bank), which sends the documents that its buyer needs to the importer’s bank (collecting bank), with instructions to release the documents to the buyer for payment. Funds are received from the importer and remitted to the exporter through the banks involved in the collection in exchange for those documents. D/Cs involve using a draft that requires the importer to pay the face amount either at sight (document against payment) or on a specified date (document against acceptance). The collection letter gives instructions that specify the documents required for the transfer of title to the goods. Although banks do act as facilitators for their clients, D/Cs offer no verification process and limited recourse in the event of non-payment. D/Cs are generally less expensive than LCs.

Open Account

An open account transaction is a sale where the goods are shipped and delivered before payment is due, which in international sales is typically in 30, 60 or 90 days. Obviously, this is one of the most advantageous options to the importer in terms of cash flow and cost, but it is consequently one of the highest risk options for an exporter. Because of intense competition in export markets, foreign buyers often press exporters for open account terms since the extension of credit by the seller to the buyer is more common abroad. Therefore, exporters who are reluctant to extend credit may lose a sale to their competitors. Exporters can offer competitive open account terms while substantially mitigating the risk of non-payment by using one or more of the appropriate trade finance techniques covered later in this Guide. When offering open account terms, the exporter can seek extra protection using export credit insurance.

Consignment

Consignment in international trade is a variation of open account in which payment is sent to the exporter only after the goods have been sold by the foreign distributor to the end customer. An international consignment transaction is based on a contractual arrangement in which the foreign distributor receives, manages, and sells the goods for the exporter who retains title to the goods until they are sold. Clearly, exporting on consignment is very risky as the exporter is not guaranteed any payment and its goods are in a foreign country in the hands of an independent distributor or agent. Consignment helps exporters become more competitive on the basis of better availability and faster delivery of goods. Selling on consignment can also help exporters reduce the direct costs of storing and managing inventory. The key to success in exporting on consignment is to partner with a reputable and trustworthy foreign distributor or a third-party logistics provider. Appropriate insurance should be in place to cover consigned goods in transit or in possession of a foreign distributor as well as to mitigate the risk of non-payment.

Kết quả (Việt) 1:

Những điểm chínhThương mại quốc tế trình bày một quang phổ của rủi ro, gây ra sự không chắc chắn trong thời gian thanh toán giữa các nước xuất khẩu (người bán) và nhập khẩu (người mua nước ngoài).Đối với doanh nghiệp xuất khẩu, bán bất kỳ là một món quà cho đến khi thanh toán được nhận.Do đó, doanh nghiệp xuất khẩu muốn nhận thanh toán càng sớm càng tốt, tốt hơn là ngay sau khi một đơn đặt hàng được đặt hoặc trước khi hàng hóa được gửi đến các nhà nhập khẩu.Đối với nhà nhập khẩu, bất kỳ thanh toán là một hiến cho đến khi nhận được hàng hoá.Vì vậy, nhập khẩu muốn nhận hàng hoá càng sớm càng tốt, nhưng để trì hoãn thanh toán càng lâu càng tốt, tốt nhất là cho đến khi sau khi hàng hóa được bán lại để tạo ra thu nhập đủ để thanh toán xuất khẩu.Tiền mặt trong nâng caoVới điều khoản thanh toán tiền mặt trong nâng cao, một nhà xuất khẩu có thể tránh rủi ro tín dụng vì thanh toán đã nhận được trước khi quyền sở hữu hàng hóa được chuyển giao. Đối với bán hàng quốc tế, giao dịch chuyển dây điện và thẻ tín dụng là những phổ biến nhất được sử dụng tiền mặt trong nâng cao tuỳ chọn có để xuất khẩu. Với sự tiến bộ của Internet, Dịch vụ ký quỹ đang trở thành một lựa chọn khác-trong-tạm ứng tiền mặt cho các giao dịch xuất khẩu nhỏ. Tuy nhiên, yêu cầu thanh toán trước là lựa chọn ít nhất là hấp dẫn cho người mua, vì nó tạo ra dòng tiền mặt không thuận lợi. Người mua nước ngoài cũng đang lo ngại rằng hàng hoá có thể không được gửi nếu thanh toán được thực hiện trước. Do đó, doanh nghiệp xuất khẩu những người đòi trên này phương thức thanh toán như là của họ cách duy nhất của hoạt động kinh doanh có thể mất đến đối thủ cạnh tranh những người cung cấp hấp dẫn hơn điều khoản thanh toán.Thư tín dụngThư tín dụng cho (LCs) là một trong những thiết bị an toàn nhất dành cho thương nhân quốc tế. Một LC là một cam kết bởi một ngân hàng thay mặt cho người mua sẽ thanh toán cho xuất khẩu, miễn là các điều khoản và điều kiện nêu trong LC đã được đáp ứng, như xác minh thông qua các bài trình bày của tất cả các tài liệu cần thiết. Người mua thiết lập tín dụng và trả tiền cho ngân hàng của mình để hiển thị dịch vụ này. Một LC là hữu ích khi tín dụng đáng tin cậy thông tin về một người mua nước ngoài là khó khăn để có được, nhưng xuất khẩu là hài lòng với tín dụng của ngân hàng nước ngoài của người mua. Một LC cũng bảo vệ người mua vì không chịu trách nhiệm thanh toán phát sinh cho đến khi hàng hóa đã được vận chuyển như đã hứa.Các bộ sưu tập tài liệuA documentary collection (D/C) is a transaction whereby the exporter entrusts the collection of the payment for a sale to its bank (remitting bank), which sends the documents that its buyer needs to the importer’s bank (collecting bank), with instructions to release the documents to the buyer for payment. Funds are received from the importer and remitted to the exporter through the banks involved in the collection in exchange for those documents. D/Cs involve using a draft that requires the importer to pay the face amount either at sight (document against payment) or on a specified date (document against acceptance). The collection letter gives instructions that specify the documents required for the transfer of title to the goods. Although banks do act as facilitators for their clients, D/Cs offer no verification process and limited recourse in the event of non-payment. D/Cs are generally less expensive than LCs.Open AccountAn open account transaction is a sale where the goods are shipped and delivered before payment is due, which in international sales is typically in 30, 60 or 90 days. Obviously, this is one of the most advantageous options to the importer in terms of cash flow and cost, but it is consequently one of the highest risk options for an exporter. Because of intense competition in export markets, foreign buyers often press exporters for open account terms since the extension of credit by the seller to the buyer is more common abroad. Therefore, exporters who are reluctant to extend credit may lose a sale to their competitors. Exporters can offer competitive open account terms while substantially mitigating the risk of non-payment by using one or more of the appropriate trade finance techniques covered later in this Guide. When offering open account terms, the exporter can seek extra protection using export credit insurance.ConsignmentConsignment in international trade is a variation of open account in which payment is sent to the exporter only after the goods have been sold by the foreign distributor to the end customer. An international consignment transaction is based on a contractual arrangement in which the foreign distributor receives, manages, and sells the goods for the exporter who retains title to the goods until they are sold. Clearly, exporting on consignment is very risky as the exporter is not guaranteed any payment and its goods are in a foreign country in the hands of an independent distributor or agent. Consignment helps exporters become more competitive on the basis of better availability and faster delivery of goods. Selling on consignment can also help exporters reduce the direct costs of storing and managing inventory. The key to success in exporting on consignment is to partner with a reputable and trustworthy foreign distributor or a third-party logistics provider. Appropriate insurance should be in place to cover consigned goods in transit or in possession of a foreign distributor as well as to mitigate the risk of non-payment.