This document provides an overview of international trade, payments, and financing. It discusses various methods of international payments including open account trading, documentary collections, and letters of credit. It describes the collection process, advantages and disadvantages for exporters and importers, and different types of letters of credit. The document also covers pre-shipment and post-shipment financing options for exporters and importers, including documentary import loans.
Letter of Credit - Complete Presentation - (Bcom-Mcom-BBA-MBA-BS)Millat Afridi
A letter of credit (LC), also known as a documentary credit or bankers commercial credit, is a payment mechanism used in international trade to provide an economic guarantee from a creditworthy bank to an exporter of goods. A letter of credit is extremely common within international trade and goods delivery, where the reliability of contracting parties cannot be readily and easily determined. Its economic effect is to introduce a bank as underwriting the credit risk of the buyer paying the seller for goods.
What is a Letter of Credit?
Parties Involved in LC Transaction
Letter of Credit Process
Types of Letter of Credit
Documents of Letter of Credit
Advantages of Letter of Credit
Disadvantages of Letter of Credit
Letter of Credit - Complete Presentation - (Bcom-Mcom-BBA-MBA-BS)Millat Afridi
A letter of credit (LC), also known as a documentary credit or bankers commercial credit, is a payment mechanism used in international trade to provide an economic guarantee from a creditworthy bank to an exporter of goods. A letter of credit is extremely common within international trade and goods delivery, where the reliability of contracting parties cannot be readily and easily determined. Its economic effect is to introduce a bank as underwriting the credit risk of the buyer paying the seller for goods.
What is a Letter of Credit?
Parties Involved in LC Transaction
Letter of Credit Process
Types of Letter of Credit
Documents of Letter of Credit
Advantages of Letter of Credit
Disadvantages of Letter of Credit
Overview of legal and financial risk-management considerations in financing international business transactions. In other words, "How to Get Paid, or Get what you Pay For in International Business".
A letter of credit, also known as a documentary credit or bankers commercial credit, or letter of undertaking, is a payment mechanism used in international trade to provide an economic guarantee from a creditworthy bank to an exporter of goods. Wikipedia
Documentary collection is one of the widely used payment methods in international trade. Partes involved in collections, types etc are discussed further in the presentation.
,
letter of credit
,
parties involved in lc transaction
,
letter of credit process
,
commercial letter of credit flow
,
advantages of letter of credit
,
risks involved
International Trade and Inherent Risks
Definition
Need for Trade Finance
Players and stake holders
Elements of Trade Finance
Traditional
Trending
Trade Financing Agencies
Terminology
Inco Terms
Summary
Overview of legal and financial risk-management considerations in financing international business transactions. In other words, "How to Get Paid, or Get what you Pay For in International Business".
A letter of credit, also known as a documentary credit or bankers commercial credit, or letter of undertaking, is a payment mechanism used in international trade to provide an economic guarantee from a creditworthy bank to an exporter of goods. Wikipedia
Documentary collection is one of the widely used payment methods in international trade. Partes involved in collections, types etc are discussed further in the presentation.
,
letter of credit
,
parties involved in lc transaction
,
letter of credit process
,
commercial letter of credit flow
,
advantages of letter of credit
,
risks involved
International Trade and Inherent Risks
Definition
Need for Trade Finance
Players and stake holders
Elements of Trade Finance
Traditional
Trending
Trade Financing Agencies
Terminology
Inco Terms
Summary
Letters of credit is a written commitment to pay, by a buyer's or importer's bank (called the issuing bank) to the seller's or exporter's bank (called the accepting bank, negotiating bank, or paying bank). It is also known as a documentary credit.
Documentary credit is an arrangement under which the bank, at the request of the buyer or on its own, undertakes to make payment to the seller-provided specific Documents are submitted.
Standby Letter of Credit Definition, Issuance, Notification and usesOscarWason
Another prominent payment technique used in international trade is the Standby Letter of Credit. What is a Standby Letter of Credit (SBLC)? How is it different from a Documentary Letter of Credit? How do issuance and notification of a Standby Letter of Credit work? … Well This article provides the answers to these questions.
What is a Standby Letter of Credit (SBLC)?
The Standby Letter of Credit (SBLC) is a guarantee issued by the importer’s bank, in favor of the exporter, for an amount agreed at the signing of the commercial contract. It provides a guarantee to the exporter that, if due to any circumstances, the importer is unable to pay, then the bank
will make the payment.
Grand City Investment Limited
Email: apply@grandcityinvestment.com
Website: https://grandcityinvestment.com
Similar to International Trade: Settlement & Financing (20)
FSIBL is an Islamic financial
institutions in Bangladesh that contributes
towards the development of the society
through CSR activities. In this report,
Carroll’s four parts model, ICSR model and
other relevant models are used in
analyzing and discussing the CSR practices
of FSIBL.
ISLAMIC CREDIT CARD: STRUCTURES & ISSUES WITH SPECIAL FOCUS ON KHIDMAH CARD ...Md. Abdul Jalil Shiblu
This paper aims to review the Islamic credit card structures or models practiced and developed so far and their shari’ah aspects, especial focus is given to Khidmah card issued by Islami Bank Bangladesh Limited (IBBL). Resolutions of OIC Islamic Fiqh academy on credit card, recommendations of Shari'ah Advisory Council of the Bank Negara Malaysia, and three conditions suggested by Kahf & Mohomed (2016) are used for determining the Shari’ah status of Khidmah credit card.
This paper argues that Khidmah card maintains its shari’ah compliant status based on Ujrah model. The underlying theme is to charge service fees for providing payment mechanism & loan related services. OIC Fiqh Academy allowed charging fees for loan related services. The underlying contract in Khidmah Card between IBBL and cardholders is Kafalah or guarantee and scholars differed whether guarantor can charge fees or not for providing services. IBBL doesn’t charge any commission directly for providing guarantees.
Islamic Capital Market (ICM) is the result of growing need for Islamic finance. This paper discussed various topics related to capital market and their Islamic appraisal. The sukuk market have been discussed in more detail. A global scenario have been highlighted and Islamic finance in Bangladesh have been discussed with problems and prospects.
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
How Does CRISIL Evaluate Lenders in India for Credit RatingsShaheen Kumar
CRISIL evaluates lenders in India by analyzing financial performance, loan portfolio quality, risk management practices, capital adequacy, market position, and adherence to regulatory requirements. This comprehensive assessment ensures a thorough evaluation of creditworthiness and financial strength. Each criterion is meticulously examined to provide credible and reliable ratings.
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
3. 01
02
03
04
Exchange of Goods &
Services
Activities of Exporter &
Importer
International payments &
Exchange Rates
International Banking &
Finance
Internation
al Trade
Activities
4. 01
02
03
Beyond Normal
CreditCredit facilities may be availed even when
normal credit facilities are fully extended.
Profitability
EvaluationCustomer can evaluate the profitability of the
customer by counting financial costs.
Lower Margin
The creditworthy customer can get lower margin
than conventional overdraft.
6. .
.
Factors Determining Method of Payment
Negotiations
between exporter
and importer
The
commercial
practices in the
countries
involved
7. Open Account Trading
No bank involvement in settlement
of trade financing and in enforcing
the payment.
This method is based on complete trust
between the importer and exporter.
The documents of title is directly sent to the
importer, and importer endorses the payments.
8. 01
02
03
04
Definition
The collection service by a bank is a means whereby a creditor
in one country obtains payment from a debtor in another
country.
URC
The roles and responsibilities of banks in collections were
established by ICC and are known as Uniform Rules for
Collection (URC).
Documentary Collection
When the commercial and financial documents are present, it
is known as documentary collection.
Clean Collection
A clean collection consists only of financial documents.
Documentary Collections
9. Parties in Documentary Collections
Debtor
Debtor is usually the importer.
Importer endorses the
documents of pay the money.
Remitting Bank
This is where the document is
sent from the bank.
Collecting Bank
A correspondent bank of the
remitting bank who present the
documents and collect the
payment.
Principal
Exporter, who entrusts an
outward collection to a
commercial bank.
10. Collection Process (Outward Collections): Exporters
02
Exporter submits his
financial and
commercial
documents to his
banks in the home
country.
04
Collecting bank
arranges for the
importer to inspect
the documents.
06
When the bill is
received, collecting
bank sends the
proceeds to the
remitting bank.
01
Exporter negotiates a
contract with
importer and ships
his/ her goods.
03
The remitting bank
forwards documents
to the collecting
bank.
05
Collecting bank
releases the
documents against
payment or
acceptance of the bill
or the issuing of a
promissory note.
11. D/P versus D/A
02
The importer sign the bill as a
promise to pay it at a set date in
the future and documents are
handled to him.
01
Documents against Payment
means the bill is payable at sight
by the importer.
02
The collecting bank hands over
the documents only when
importer has paid the bill.
01
Documents against Acceptance
means the exporter allows credit
terms to the importer, and bill is
known as ‘usance’.
12. Advantages of Collections for the Exporter
01
02
03
Reduces Risk
It reduces the risk for both exporter and
importer for receiving payment and
goods.
Cheaper
Collections are cheaper than documentary
credit through the later is more safe.
Obtaining Finances
Exporter can raise finance by obtaining an
advance against the security of the bill.
13. Possible Disadvantages of Collections for the Exporter
04030201
Rejection
Overseas buyer
might refuse to pay
or accept a bill on
presentation of the
documents.
Slow
Remittance of docs
and collection times
can be relatively slow
& exporter may have
to wait.
Financing
Cost
In case of usance
bill, exporter may
raise funds against
the collection but it
will increase cost .
Protesting
Cost
Any expenses
incurred by a
collecting bank for
protesting a bill are
charged to the
exporter.
14. Collection Process (Inward Collections):
Importers
01
The collecting
bank acts as
agent to the
remitting bank
and explicitly
follows the
instructions of
remitting bank. 02
Collecting bank
advises the
importer that
collection has
been received,
seeks his
acceptance or
payment of the
bill.
03
Collecting bank
advises the fate
of the bill of
exchange by
informing the
remitting bank.
04
The collecting
bank remit the
proceeds to the
remitting bank
promptly less
charges.
15. Advantages of Collections for the Importer
01
Term bill provides
the buyer with a
period of credit
from the exporter.
02
Importer can
inspect the
documents before
accepting a bill.
03
In clean
collection, buyer
can take
possession of the
goods before
paying for them.
04
The collection is
cheaper and
simpler for the
importer than
documentary
credits.
16. .
.
Disadvantages of Collections for the Importer
Legal action
might be taken
against if importer
dishonors an
accepted bill of
exchange.
Refusal to
accept goods
could lead to a
protest of non-
acceptance.
17. Recourse Finance versus Non-recourse
Finance
02
Avalization is the process
whereby a bank guarantees
a bill of exchange.
01
Bank grant loan against the
collection in order to make
available the exporter a part
of all of the sale proceeds.
02
Generally, loan against
collections are subject to full
recourse to the exporter.
01
Non-recourse finance may
happen where the bills are
avalized by an overseas
banks or the importer has
strong credit rating.
18. Documentary Credit
Irrevocable L/C
Irrevocable L/C provides greater
security to the exporter, hence
almost all the L/C issued today
are irrevocable L/C.
Revocable L/C
Importer can amend or cancel it
without prior notice to the
exporter, rate in today’s.
Irrevocable L/C
Once issued cannot be
amended or cancelled without
prior agreement of the exporter
L/C
It is a written undertaking by a
bank on behalf on a importer to
pay the seller an amount of
money within a specified time
provided the seller presents
documents strictly in
accordance with the terms of
L/C.
01
0
1
04
03
02
02
0
3
04
19. Process of Documentary Credits (L/C)
02
The Importer’s bank
is instructed to issue
an L/C in favor of the
exporter.
04
Exporter ships the
goods and presents
the documents to the
advising, confirming
or nominating firm.
06
Issuing bank makes
the documents
available to the
importer and receive
imbursement from
the importer.
01
Importer negotiates a
contract with
exporter providing for
payment by L/C.
03
Issuing bank sends
the L/C to the
exporter’s bank,
known as advising
banks, it may add its
own confirmation.
05
The documents are
forwarded to the
issuing banks for
receiving payment at
sight or in future
specified date.
20. Advantages of L/C for the Exporter
Security and
Confidence
Bank guarantee
3
1 2
4
5 6No buyer risk
Domestic payment
arrangement is
possible
Confirmation is
available
UCPDC reduces
unpleasant surprise
21. Advantages of L/C for the Importer
Importer can
obtain help
and advice
from the
issuing bank.
Importer can
insist on
shipment of
goods within a
reasonable
period.
Payments will
only be made
if documents
are presented
properly.
Some costs
may be
passed to
the exporter.
Importer’s
credibility
increases in
the eyes of
exporter.
Importer
obtain trade
credit and
better price
under L/C.
22. .
.
Disadvantages of L/C for the Importer
Bank deals with
documents, not
goods, it doesn’t
concern about
goods’
condition.
Importer is
required a
credit limit
approved by
bank, which
restricts other
credit
facilities.
23. .
.
Confirmed L/C & Deferred Payment L/C
Advising bank in
the exporter’s
country confirms
an L/C. So, the
L/C is
guaranteed by
two banks.
L/C payment
is made in
future date,
exporter need
‘t draw a bill of
exchange.
24. General Types of L/Cs
Transferable L/C
Standby L/C
Revolving L/C
Back-to-Back
Receipt &
Undertaking L/C
Red Clause L/C
3
1 2
4
5 6
26. BACKTOBACK
L/C
03
01
04
02
TRANSFERABLE
L/C
07
05
08
06
Back to Back involves
two L/Cs.
Differences between Back to Back L/C and
Transferable L/C
Transferable credit
involves one L/C.
Back to Back
arrangement may work
with any L/C.
Transferable L/C is
designated as
‘Transferable’.
L/C is issued under the
full responsibility of bank.
L/C is transferred
without the
responsibility of bank.
Intermediary needs
credit to be approved by
bank.
Intermediary needn’t
credit to be approved by
bank.
27. Bank
discounts the
bill of
exchange
(L/C) less
interest
charges.
Discounting
L/C is
obtained on
a non
recourse
basis.
Exporter can
offer credit
terms to
importer though
obtain
immediate
proceeds.
Post Shipment Finance for Exporters
28. Back to Back
Letter of
Credit.
Red Clause
Letter of
Credit.
Receipt and
Undertaking
Letter of
Credit
Pre Shipment Finance for Exporters
29. Post-shipment Finance for Importers
01
There are Two
types:
documentary
import loans and
clean import
loans.
02
Import loans used
as stand-alone
funding vehicle
and essentially
not much different
from other loans.
03
Finance is made
available against
the security as
letter of pledge or
trust receipts in
documentary
import loans.
04
Clean import
loans are
appropriate when
loans need to be
structured and
transactional
control is not
required.
30. Security Documents used with Documentary Import
Loans
A General Letter of
Pledge
Bills of Lading
A Warehouse
Warrant
Shipping Documents
Airway Bill
Trust Receipts
3
1 2
4
5 6
31. Advantages of Documentary Import Loans for the Banks
04030201
More Loans
Banks can lend more
though the
customer’s balance
sheet don’t support
the levels requested.
Structured
Banks know the
source and timing of
repayment and
exactly know what
they are lending
against.
Transactional
Control
Transactional control
is obtained by
handling shipping
documents.
Early
Warning
Non-repayment on
due date provides an
early warning of
possible problems
ahead.
32. .
.
Disadvantages of Documentary Import for
Banks
Additional cost of
administration-
security taking,
structuring is time
consuming,
additional
monitoring.
The value of
goods may fall
significantly in
case of forced
sale.
33. .
.
Advantages of Documentary Import loans for
Importer
The increased
assurance
permits the
importer to
obtain increased
credit facilities.
The importer
may obtain
reduction in
pricing
compared to
overdraft.
34. .
.
Disadvantages of Documentary Import loans for
Importer
Complex
administration
and less
flexibility
compared to
conventional
overdraft.
Banks’
involvement in
movements of
goods are
disliked by
importer.