Remittance means that the importer pays the goods to the exporter through the bank, which belongs to the downstream mode and belongs to commercial credit.

There are three ways of remittance: telegraphic transfer, telegraphic transfer and D/P ... Telegraphic transfer is the most commonly used method.

Remittance:

Remittance is a way that the importer gives the payment to the bank in the place of import, and the bank issues a remittance power of attorney, which is sent to the local bank by letter and entrusted to pay the exporter.

Collection:

Collection means that after the exporter loads the goods, he draws up a bill of exchange, together with a full set of shipping documents, and entrusts it to the bank at the place of export.

Collect payment from the importer through the importer's branch or correspondent bank at the place of import. It belongs to reverse exchange method and commercial credit. that

It is divided into D/P and D/A. ..

Letter of credit:

A letter of credit is a certificate issued by the bank to the exporter at the request of the importer to ensure the payment responsibility. It belongs to reverse exchange method and bank credit. This is one of the most common payment methods in international trade. According to the effect, it can be divided into two types: revocable and irrevocable; According to time, it can be divided into spot and forward. In addition, there are some special letters of credit, such as confirmed letter of credit, transferable letter of credit, revolving letter of credit, prepayment letter of credit and other new varieties.