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INTERNATIONAL TRADE FINANCE - Coggle Diagram
INTERNATIONAL TRADE FINANCE
Problems & Risks
Simoultaneous Shipment, Delivery and Payment
Carriage risk (Damaged or Loss fo Goods)
Commercial Risk (Default of Buyer)
Money Transfer risk (Exchange Rate)
Different Legal Systems (Incoterms)
Documents
Bill of Lading
Commercial Invoice
Packing List
Insurance Documents (against damage or loss)
Consular Invoice
Methods of Payment
Direct Agreement
(Higher Risk) :red_flag:
Sales on Open Account
No Particular Date of Payment (only particular terms)
Discount for Early Payment;
Additional Interest for Overdue Payment
Cash in Advance
Intermediary Guarantee
(Lower Risk)
Documentary Collections
Documentary Against Payment
D/P (Payment First)
Documents Againts Acceptance
D/A (Bill of Exchange First)
Documentary Credits
Importer's Banks substitutes the Importer's
CREDITWORTHINESS
Main Docs:
Letter fo Credit (L/C) (Importer's Bank)
Time Draft (Expoter's Bank) + Bill of Lading (as title of goods)
Banker's Acceptance (Importer's Bank)
Types of Bank
(Letter of Credit)
Issuing Banks
(Importing Banks susbstituting the Importer)
Notifying Bank
(Notifies Importer of Arrival of Docs)
Cofirming Bank
(2nd guarantee that pays if docs are correct)
Financing Exports
(Liquidity secured for Production Costs)
Bank Line of Credit
Exporter's Bank
finances for Raw Materials
Banker's Acceptance
Banker's Acceptance
is Sold to a
Third Party
to ha Immediate Liquidity
Buyer Credit
Importer finds Bank for a LOAN to pay Exporter
for Production. Importer will pay back in few years the Bank
Sale Of Receivables (Factoring)
Exporter sells
Unpaid Invoice
to
Third Party
at a Discount
Recourse
Non-Recourse
Forfaiting
Exporter sells the
DEBTS of Importer
spread in years to Forfeiter at Discount (Non-Recourse)
Export Factoring
Multi-Exporter
uses a Factor to:
Credit Checking
Debt-Collection
Liquidity
Recourse
Non-Recourse