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 Letter of Credit? How do issuance and notification of a Standby Letter of Credit work? … This article provides the answers to these questions. We already know […]
Tag Archives | Trade Finance
Documentary collection – definition, main actors, how it works, SWIFT messages
Documentary collection is one of the common payment techniques used in international trade to facilitate import/export operations. In this post, we provide the definition of a documentary collection, present the key players and the related process steps. Before starting our analysis, take note of this interesting remark: documentary collection belongs to payment techniques that require […]
Cash on delivery in Trade Finance
In the previous article, we started our analysis of payment techniques with the payment against invoice. In this post, we consider another payment technique called Cash on delivery or Cash against delivery. In Trade Finance, Cash On Delivery (COD) is a payment technique in which “Cash” is collected by the carrier upon delivery of the […]
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 receipt […]
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 least […]