10 Terms You Need to Know to Get Paid for Your Exports скачать в хорошем качестве

10 Terms You Need to Know to Get Paid for Your Exports

What’s the most rewarding—and sometimes frustrating—aspect of being an exporter? For many, it’s getting paid on time. In the correct amount. This video explains 10 terms related to the payment process—understand them, and chances are you’ll make a profit sooner! ************* ► Trade Finance Guide: A Quick Reference for U.S. Exporters: https://www.shippingsolutionssoftware... ► Find 100s of articles about various aspects of exporting on Passages: The International Trade Blog: https://www.shippingsolutionssoftware... ► Request a free Shipping Solutions demo here: https://www.shippingsolutionssoftware... ► Download free PDFs of export documents here: https://www.shippingsolutionssoftware... ► The Beginner's Guide to Export Forms: https://www.shippingsolutionssoftware... ************** Theses are the five primary methods of payment used in exporting, from most risk to the exporter to the least risk: 1. Consignment Consignment is a variation of open account. Payment is sent to the exporter after the goods have been sold by the foreign distributor. It’s the riskiest of the most common methods of payment. 2. Open Account (O/A) An open account transaction in international trade is a sale where the goods are shipped and delivered before payment is due, which is typically in 30, 60 or 90 days. Open accounts are risky for exporters; but from your client's perspective, this is the preferred method of payment. 3. Collections In collection, or documentary collection, you’re relying on a bank to control your product until payment is made. Your bank (the remitting bank) sends documents to the importer’s bank (the collecting bank) along with instructions for payment. The funds are received from the importer and remitted to you in exchange for the documents. The most significant risk is your buyer saying they no longer want the product that was shipped. 4. Letter of Credit (L/C) International letters of credit are a commitment by a bank on behalf of the foreign buyer that payment will be made to the exporter if the terms stated in the letter of credit have been met. It is one of the most secure methods of payment for an exporter. 5. Cash in Advance With cash in advance, the exporter can eliminate credit risk or the risk of non-payment since payment is received before ownership of goods transfers. Wire transfers and credit cards are most commonly used. After you’ve chosen your payment method, these are some of the rules, documents and procedures you need to understand to ensure payment. 6. Bank Draft and Transmittal Letter Bank drafts are essential documentation. They help keep shipping items efficiently moving and organized along their route. 7. Uniform Customs and Practice for Documentary Credits The Uniform Customs and Practice for Documentary Credits, or UCP 600, is a set of rules and regulations banks follow for letters of credit and other types of payment. The UCP is governed by the International Chamber of Commerce. 8. Telegraphic Transfer Also known as a wire transfer, the telegraphic transfer is a common way to get paid when exporting internationally. 9. EXIM Bank The Export-Import Bank of the United States is the official export credit agency of the United States. Its mission is to ensure that U.S. companies of all sizes have access to the financing they need to turn export opportunities into sales. 10. Arbitration Arbitration is essentially private litigation. Instead of one party suing the other in a court system in a particular country, arbitration is consensual. The parties must both agree to submit a dispute to arbitration. An agreement to arbitrate can be done up front in the contract by inserting an arbitration clause or even entered into after a dispute begins. *************** Chapters 00:00 Introduction 00:51 Consignment 01:02 Open Account 01:20 Documentary Collection 01:47 Letters of Credit 02:01 Cash in Advance 02:22 Bank Drafts 02:30 Uniform Customs and Practice for Documentary Credits 02:46 Telegraphic Transfer 02:53 EXIM Bank 03:09 Arbitration 03:41 Free Trade Finance Guide ************** Make sure you subscribe to this channel for more practical advice for exporters and importers.    / @shippingsolutions   ************** #exportdocumentationsoftware #exportdocuments #usexportinghelp #usexportdocuments #shippingbillforexport #letterofcredit #openaccount #consignment #DocumentaryCollection #CashinAdvance #BankDrafts #eximbank