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CLEAN BILL COLLECTION, DOCUMENTARY CREDIT, DOCUMENTARY COLLECTION - Coggle…
CLEAN BILL COLLECTION
payment mad
Bill of exchange
obliges importer to pay
payment very common
exporter can pay when he wants
no shipping documents
goods use befor payment
Procedure
exporter creat B/E and sends to Importer
importer accept B/E
importer sends signed B/E back
exporter ships goods
bank exporter sends B/E bank importer
bank importer sente bill of payment
DOCUMENTARY CREDIT
are involved 4 parties
importer
exporter
importer's bank
exporter bank
most safe metod of payment
but
used seller don't trast buyer
is very expensive
guarantees seller and buyer
use document
Letter of credit
L/C
bank guarantees to pay
The Bill of Exchange
Shipping Documents
Procedure
bank importer open credit favor exporter
bnak importe sends L/C
exporter confirms L/C
exporte ships goods and sents documets
The importer’s bank checks the documents
The importer receives the draft and pay
DOCUMENTARY COLLECTION
use a
draft
to pay
sends with shipping documents
method of payment
safe both part
importer
use goods after payment
safe for exporter
importe
pay after goods redy to shipped
safe fo importer
Procedure
exporter give document and draft his bank
bank send document to other bank
bank gives document to importe after payment
bank importer sent mony bank importer
the importer can collect the goods