LSI method (1) The operation process of LSI method: LSI method refers to the method of advance payment-spot contract-investment. By completing the collection and payment in advance, the time risk can be avoided. Avoid foreign exchange risk through spot trading and avoid interest loss through short-term capital market investment. (2) The specific application of 2)LSI in foreign currency accounts receivable; (2) In the case of accounts receivable, after obtaining the debtor's consent, give him a certain discount and ask him to pay the payment in advance to eliminate the time risk; In the future, the local currency will be converted into local currency through spot contracts to eliminate currency risks. In order to obtain a certain income, it will be reinvested in local currency, and the part with less investment income will be used to offset the discount caused by early receipt and payment. (3) 3) Specific application of LSI in foreign currency accounts payable In the case of accounts payable, first borrow a local currency, buy foreign currency through spot contract, and pay the payment in advance with the bought foreign currency. Therefore, time risk and value risk are eliminated. Only lead in local currency will be paid back in the future. This process is actually to borrow money first, then sign a spot contract with the bank, and finally pay in advance (BSI), but it is not called BSI in international tradition, but LSI.