Simple collection or payment against invoice
We begin our analysis of payment techniques with the payment against invoice or simple collection. This technique involves requesting the payment of exported goods against a simple presentation of the commercial invoice. The importer is supposed to be paid upon receipt of the invoice (and possibly all documents enabling him to clear them), not after...
Trade Finance basics
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...
Usage of MT400 SWIFT Message to announce the proceeds
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...
SWIFT MT400 Usage for the settlement of proceeds
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...
Collecting Bank and Remitting Bank in SWIFT Category 4 Messages
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...
