Bank International

BANK WORLDS: It is impossible to be in international trade without the Bank for all services provided to them such as advice on financial issues and risks. It is true that one critical hurdle for SMEs, the lack of information on international trade processes, documentation and banking procedures necessary to exercise with foreign business partners. For the result of international trade-oriented and cost-effectively, you will probably need access to accurate and timely information and knowledge about the banking sector.

Payment methods in international trade

Of course, all payments in international trade will be done by the bank or by bank transfer or check with the latter rather not not the fastest. Below are some common ways of payment in international trade.

1st Bank project is a cheaper alternative and easier to obtain, but there is a risk of loss in transit. The only advantage he has to check is quicker credit that the exporter receives.

2nd Letter of Credit. This instrument of trade is mutually beneficial for both sides. The exporter gets paid when he received a copy of the Bol (waybill) from the shipping company and the LOC, the Bank shall, regardless of whether the shipment reached its destination or not.

3rd Transfer is by far the fastest and the cheapest option to transfer the importer requests his bank the amount into the bank account of the exporter. The first time the transfer takes place in about 10-15 days, depending on destination and delivery of the bank. International transfers are carried out by intermediary banks / correspondent banks.

4th Although not on a grand scale, some manufacturers in China accept Paypal for smaller amounts like $ 5,000 U.S., but require an additional 3% on the fees charged. Paypal is the quickest and easiest method of payment in international trade.

Banks to serve the international trade, understand the crucial role to play. Many large banks maintain worldwide correspondents ensure rapid delivery of real money, money wire or draft. You can bank on behalf of international trade on the basis of whether the bank may choose to extend advances on accounts receivables. Bank may, but need to ensure you put your account of an export credit insurance provided by Export Import Bank of the United States. The banks can also be in a foreign exchange contract with your bank and the amount of currency that you get when you do give in convertible currencies. You need your bank to communicate with you, as you are in international trade.