Trade Finance is a very broad topic (about 1.5 billion results on google). Since Trade and payments are closely interlinked, it can be interesting to take a closer look at it. Furthermore, we have studied cross border payments in the last weeks. What we learned should help us to understand trade finance faster, at least […]
The IBAN number or simply IBAN (International Bank Account Number) serves as the unique identifier for the bank account in SEPA payments. Debtor and Creditor accounts must be provided therein in IBAN formats. But contrary to what many believe, IBANs are not used everywhere in the world as we will see below. This article begins with […]
The MT400 SWIFT Message is an advice of payment sent by the collecting bank to the remitting bank. A lot of things happen before the funds are collected and the MT400 message is sent. That is why in a previous article, we explained what documentary collections are and the roles that collecting and remitting banks […]
The SWIFT MT400 is an advice of payment sent by the collecting bank to the remitting bank. A lot of things happen before the funds are collected and the SWIFT MT400 message is sent. That is why in the previous article, we explained what documentary collections are and the roles that collecting and remitting banks […]
SWIFT category 4 messages (part 1) are about payment collections. In the SWIFT standards documentation, we read that these messages are exchanged between the collecting bank and the remitting bank. And unless you know what is a collecting bank and what is a remitting bank, it is not easy to understand those messages. So the purpose […]
Simply put, SEPA payments are pan-European payments instruments in Euro, created as results of the SEPA project whose aim is to harmonize standards and practices for electronic and cash payments across the SEPA area. The SEPA area consists of 34 countries out of which some do not use Euro as local currency. If you are […]
The different parties involved in bills of exchange as well as their roles were presented in the previous article. In this article we consider two other parties that play an important role in bills of exchange: the drawer’s bank and the drawee’s bank. Banks are involved in the settlement of bills of exchange since they […]
In this article, we continue our analysis of negotiable instruments with the bill of exchange. Historians believe the Bills of exchange to have been invented by Florentine Jews. They were created to avoid the transport of funds and have been used in trade since the middle ages. At the beginning they were used in foreign […]
We saw in the previous article that numerous parties are involved in promissory notes. The different parties were presented as well as the role they have. In this article we consider two other parties that play an important role in promissory notes: the drawer’s bank and the drawee’s bank. At the end of the day, […]
After the introduction of negotiable instruments in the previous article, we will now focus on two instruments that are extensively used in business transactions in numerous countries: the promissory note and the bill of exchange. This article is about the promissory note and will handle the following topics: What is a promissory note? Contents of […]