The complexity of international trade, due to the trading parties in different regions, countries, so it is more difficult to settle trade. No matter what kind of international trade settlement method is adopted, the most basic premise is to understand the credit status of the trading party clearly, so as to promote the smooth completion of trade. Our professional financial settlement team provides customers at home and abroad with L / C, DP, DA and other legal and compliant bank settlement channels.
In the choice of trade settlement, we should try our best to avoid the more risky way, and actively use insurance or multiple settlement methods to offset the risks. Once a certain settlement method is adopted, we should consider the potential risks as much as possible and take corresponding measures earlier to protect our own interests.
1. L / C settlement method
Letter of credit (L / C) is the product of bank credit intervening in the settlement of international sale price of goods. It not only solves the contradiction of mutual distrust between the buyer and the seller to a certain extent, but also makes the two sides obtain the convenience of bank financing in the process of using L / C to settle the payment, thus promoting the development of international trade. Therefore, it is widely used in international trade, so that it has become a major way of settlement in today's international trade.
2. Remittance is combined with bank guarantee or letter of credit
Remittance combined with bank guarantee or letter of credit is often used in the settlement of payment for complete sets of equipment, large machinery and large means of transportation (aircraft, ships, etc.). This kind of products, with large transaction amount and large production cycle, often require the buyer to prepay part of the payment or deposit by remittance, while the rest of the payment is paid by the buyer in instalments or delayed payment according to the provisions of the letter of credit or the issuance of a letter of guarantee.