User:Jukeboksi/BBA studies/Entering Target Markets: Difference between revisions

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=== Methods of [[w:payment|payment]] ===

* '''Open account'''

* '''[[w:Documentary credit|Documentary credit]]''' -> redirects to '''[[w:L/C|L/C]]''' as it ensures the payment.

* '''[[w:Advance payment|Advance payment]]''' ( Teacher )

* '''[[w:Documentary collection|Documentary collection]]'''

* '''[[w:~~Documentary credit|Documentary credit]]''' -> L/C ensures payment~~

:::A '''[[w:documentary collection|documentary collection]]''' is a process, in which the [[w:seller|seller]] instructs his [[w:bank|bank]] to forward [[w:document|document]]s related to the [[w:export|export]] of goods to the [[w:buyer|buyer]]'s bank with a request to present these documents to the buyer for [[w:payment|payment]], indicating when and on what conditions these documents can be released to the buyer. ( Wikipedia )

* '''[[w:~~Advance payment|Advance payment]]'''~~

::::::Documentary Collections facilitate [[w:import|import]]/export operations. ''They do not provide the same level of security as '''[[w:Letters of credit|Letters of Credit]]''', but, as a result, the costs are lower.'' ( Wikipedia )

::::::Unlike the Letters of Credit, for a Documentary Collection the bank acts as a channel for the documents but does not issue any [[w:payment covenant|payment covenant]]s (does not guarantee payment). The bank that has received a documentary collection may [[w:debit|debit]] the buyer's account and make payment only if authorised by the buyer. ( Wikipedia )

* A '''[[w:documentary collection|documentary collection]]''' is a process, in which the [[w:seller|seller]] instructs his [[w:bank|bank]] to forward [[w:document|document]]s related to the [[w:export|export]] of goods to the [[w:buyer|buyer]]'s bank with a request to present these documents to the buyer for [[w:payment|payment]], indicating when and on what conditions these documents can be released to the buyer. ( Wikipedia )

:::::: Documentary collection is done with the '''[[w:Bill of lading|Bill of lading]]''' ( jubo-jubo )

:::Documentary Collections facilitate [[w:import|import]]/export operations. ''They do not provide the same level of security as '''[[w:Letters of credit|Letters of Credit]]''', but, as a result, the costs are lower.'' ( Wikipedia )

:::Unlike the Letters of Credit, for a Documentary Collection the bank acts as a channel for the documents but does not issue any [[w:payment covenant|payment covenant]]s (does not guarantee payment). The bank that has received a documentary collection may [[w:debit|debit]] the buyer's account and make payment only if authorised by the buyer. ( Wikipedia )

::: Documentary collection is done with the '''[[w:Bill of lading|Bill of lading]]''' ~~( jubo-jubo )~~

* '''Documentary credit''' redirects to '''[[w:L/C|L/C]]''' as L/C as it is done with L/C ( jubo-jubo )

== Lesson 5 - NO CLASS ==