2. 外语
  3. Xinhua Garment Company wants to export its goals to a customer in Germany. Advise the company the two trade financing methods of

Xinhua Garment Company wants to export its goals to a customer in Germany. Advise the company the two trade financing methods of

admin2011-01-15  31
问题 Xinhua Garment Company wants to export its goals to a customer in Germany. Advise the company the two trade financing methods offered by banks.
选项
答案The two methods are documentary credits arrangements and documentary collection arrangements. Documentary credit arrangement: —A documentary credit is a written undertaking by a banker who is the agent for the importer or the buyer. —The parties involved in a documentary credit arrangement: -issuing banker: also called importer’s banker or buyer’s banker; the bank is usually in the importer’s country, it issues the credit and undertakes to pay; -advising banker; -the applicant: the importer or the buyer; -the beneficiary: the exporter or the seller. —The functions of documentary credits: -secure for the traders involved; -reliable source of finance. —The types of documentary credits: -revocable credit; -irrevocable credit; -confirmed credit. The process of documentary credits: —the importer requests his banker (issuing bank) to issue a documentary credit in favor of the exporter or the beneficiary once the sales contract is initiated; —the issuing bank examines the credit-worthiness of the buyer and issues the documentary credit; —the issuing bank informs the reimbursing bank and instructs them to honor the claims from the negotiating bank; —the documentary credit is then passed to the advising bank; —after verifying the genuineness of the credit, the advising bank passes the documentary credit to the beneficiary; —on receiving the documentary credit, the exporter checks the terms and conditions against the sales contract to ensure that everything agrees with the credit requirement; —the exporter presents the necessary documents to the advising bank for the release of goods and settlement of payments; —after receiving the documents from the exporter, the advising bank (it acts as the negotiating bank as well) checks the documents against the terms and conditions of the contract signed; —if all is proper, the negotiating bank pays the exporter and immediately forwards the documents to the issuing bank and claims reimbursement from the reimbursing bank; —having received the documents from the negotiating bank, the issuing bank will debit the account of its clients and forward the documents to them. Documentary collection arrangements: —Documentary collection is to provide both importer and exporter with a compromise to settle their trade transactions between payment in advance and on open account terms. —The features of documentary collection arrangements: -involve little risk; -be the least expensive. —The process of documentary collection arrangements: -once a sales contract is confirmed between the two parties of the trade, the drawer ships his goods and presents the shipping documents to his bank or sends the goods directly to the "drawee"; -the drawer presents all documents, such as bill of exchange, the transport documents and the instructions required to the remitting bank; -the drawer gives the instruction on the ways that the documents should be released to the drawee; -the drawer gives instructions on how to proceed if there is default in payment and on the action to be taken for the protection of the goods; -the remitting bank delivers all these documents to the collecting bank; -the collecting bank follows the instructions on payment collection from the drawee at the time specified in the contract; -on receiving the payments from the drawee, the collecting bank remits the proceeds of the collection to the remitting bank; -the remitting bank credits the drawer’s account; -the remitting bank checks all the documents and makes sure that all are properly drawn and endorsed; -the remitting bank sends all the documents abroad to the collecting bank for payment.
解析
转载请注明原文地址:https://kaotiyun.com/show/U3Yd777K
0

中级（银行业务）

原金融专业英语（FECT）

金融英语（FECT）

相关试题推荐
随机试题
最新回复(0)