After receiving the collection document sent by the exporter through the collecting bank, the collecting bank will pay and release the bill in advance or due according to the bill application and necessary documents submitted by the importer, and the importer will pick up the goods with the certificate and return the principal and interest of the collecting bank with the after-sales payment at the agreed time. It should be noted that this kind of business has a high risk factor for financing banks. Therefore, the requirements for importers are very strict, otherwise no orders will be given.
Introduction:
Negotiation, also known as bill settlement, refers to the negotiation bank purchasing the beneficiary's bills and documents according to the terms of the letter of credit, deducting the interest from the negotiation date to the expected date of receipt of the bill, and converting the balance into RMB according to the foreign exchange rate on the negotiation date and distributing it to foreign trade companies.