How to Conduct International Transactions

Payment transactions in foreign economies, can be used several ways, including: Cash Payments made by using a check / check or bank draft, when goods are shipped by the exporter or earlier. This method is very good for the exporters that their financial situation is weak and not well acquainted with the importer. Open Account Is the opposite of the way of cash, the payment is made after some time or the wisdom of the importer after the goods are shipped to the importer without a warrant of payment and documents. Commercial Bill of Exchange Is the most commonly used and often referred to draft or trade bills, the letter written by the seller that contains the commands to the buyer to pay a certain amount of money at a certain time in the future, which is usually called the trade drafts. This type of draft; clean draft and documentary draft. Letter of Credit L / C is a letter issued by the bank at the request of the goods the buyer (importer) which is an approved bank and pay bills of exchange drawn by the seller (exporter). Thus the L / C is a tool and can substitute for bank credit to guarantee payment to the exporter. Parties involved in the L / C is the Opener (importer), issuer (the bank issuing the L / C), Beneficiary or the seller (exporter), and in practice there is another party that is Confirming Bank, the bank in the exporter country. private Compensation Is the completion of a compensation payment of debts without the transfer of currency to another country.