国际支付国际商务英语_国际商务英语词汇

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Introduction to International Payment

Abstract:With the development of economic globalization, international trade is becoming more and more important.International payment is vital to both the importer and the exporter.The purpose of this paper is to introduce what is international payment, its characters, its development and what’smost eential, its types and how it works.Keywords:international payment, international trade, fund transfer

As we all know, with the development of economic globalization, international trade is becoming more and more important.We can see foreign goods everywhere in our life and use it conveniently.But international trade is far complicated.Purchase and sale of goods and services are carried out beyond national boundaries, which make it rather difficult for the parties concerned in the transaction to get adequate information about each other's financial standing and creditworthine.Therefore, mutual trust is hard to build.Both the exporter and the importer face risks as there is always the poibility that the other party may not fulfill the contract.And the currency exchange is also a trouble.So it relates to what is international payment and how it works to safeguard the seller and the buyer’s benefits.1、The concept of International Payment

Generally, International payment is an act of paying off one party’s international debt by some payment instruments in international transactions, it is usually performed bytheparty withthe obligation of paying money.In short, it is a means of payment in international trade by parties in different counties.2、the characters of international payment

We can easily find that international payment has some characters:

Firstly, it is caused by the debt and creditor’ rights relationship in international transaction.Secondly, the objects of international payment are the parties of international commercial activities.Thirdly, the payment was made by some tools, usually by currencies and bills.On one hand, because different countries use different currencies, this involves the choice of currency, the exchange of different currencies, and other risk problems by the flexible exchange rate.on the other hand, in order to avoidvarious risks and inconvenience caused by direct delivery of large quantities of money,the use of bills must be considered, aociated a series of complex legal iues related to transfer of different countries’ bills.Lastly, there are different means of payment to deal with the problem of security aurance and finance flow, such as remittance, collection, and letter of credit, and international factoring.3、the development of International payment

International payment does not exist from the beginning.It came with commercial import and export, and developed for a long time.with the development of international trade, its scope of application also expanded fast and increasingly.Before the period of liberal capitalism, people often used cash payment by conveying gold or silver between countries for international transaction, which is not only risky but also inconvenient.what’s more, those gold and silver should be carefully identified and counted.So it is only fit for small trading volume.In the 16th and 17th century, bills were widely used for payment in some European commercial city and took the place of cash.It make the payment very quick, easy, and save cash and expense of circulation.So it promoted the further development of international trade.At the end of nineteenth Century the beginning of the twentieth Century, in international transaction the buyer voucher payment ,which called for the bank to finance exporter by mortgaging the bill documents ,was completely mature.Since the Second World War, with the development of modern technology as well as the improvement of international treaties and practice, the international payment adapted to the highly developed world economy needs and became more and more fast, convenient and important.4.the types of international payment

There are two kinds of international payment: direct and indirect payment.Direct payment is the way that the two parties of international transition work with the bank, such as remittance, collection, and letter of credit.On the other hand, indirect payment refers to that besides the parties and the bank, there are other subjects attended to the payment.In practice, the latter way, namely international factoring, is more popular.(1)Remittance

Remittance is an act of payment that the remitter hand off the finance to the bank, and then the bank deliver it to the payee according to the remittance instruction.whether to pay or not depends on the importer(buyer)or a service recipient, the payment is not guaranteed.So it is risky to both two parties.Actually, unle both parties have a close relationship or it is a small amount of payment, remittance is rarely used.In international payment, remittance refers to direct payment between the importer and exporter.It can be divided into three types: Mail Transfer, Telegraphic Transfer and Demand Transfer.A.Mail Transfer, M/T

M/T is a method of payment that the remitter submits the finance to the local remitting bank, then the bank should iue a payment proxy and sent it to the local paying bank of the payee by post office.The cost of M/T is low, but speed is very slow.B.Telegraphic Transfer，T/T

Remittance by cable or telex is called telegraphic transfer.That is, the

remitting bank, at the request of the remitter ,transfers funds by means of cable or telex meage to the paying bank, asking the latter to pay a certain sum of money to the beneficiary.T/T is faster and safer than M/T, but the cost is much higher.It is often chosen by traders, especially when the remitted amount is large and the transfer of funds is subject to a time limit.C.Demand Transfer，D/T

The remitting bank, at the request of the remitter, draws a bill of exchange on the paying bank, ordering the latter to pay on demand a certain sum of money to the beneficiary who will also be the payee of the draft.What is different from M/T and T/T is that in the D/T, the remitter submits the receipt of the draft to the payee and the instrument between the remitting bank and the paying bank is made by the bill of exchange.The bill is a bank draft.The advantage of the settlement is the transfer of the bill of exchange.(2)Collection

Collection means the handling of documents by banks in accordance with instructions received to obtain payment and/or acceptance for exporter and deliver documents against payments and/or against acceptance.The documents includes both financial documents and commercial documents.Financial documents are bills of exchange, promiory notes and cheques;commercial documents are invoices transport documents, title documents and other similar documents.According to whether commercial documents are attached to financial documents when submitted to the remitting bank, collection can be divided into clean collection and documentary collection.A.clean collection

It is the collection on financial instruments alone without being accompanied by commercial document.Shipping documents will be forwarded by the exporter directly to the importer.When a credit instrument is accompanied by a non-shipping document such as voice, the collection will also be considered as clean one.It is often used to collect incidental expenses occurred in a transaction such as freight, insurance premium, commiion or any other supplementary charges.On the other occasions, clean collection is used in the collection of down-payment or in the case of service transaction where are no shipping documents available.B.documentary collection

Documentary collection is the collection on financial instruments being accompanied by commercial documents or the collection on shipping documents without financial documents.When financial instruments are not included, the stamp duty can be avoid and the invoice can do the job of financial documents by indicating clearly the amount to be collected.It can be further divided into documents against payment and documents against acceptance.The division is based on different conditions against which

the documents are released to the importer.The former means that the collecting bank may release the documents against payment of the sight drafts or simply against sight payment of the importer, and the latter means that the collecting bank may release the documents against payment of a time bill.(3)Letter of Credit，L/C

The letter of credit is the bank instrument that aures the person selling merchandise of payment if he makes the agreed-upon shipment.On the other hand, it also aures the buyer that he is not required to pay until the seller ships the goods.It is a catalyst that provides the buyer and the seller with a mutual protection in dealing with each other, and it is based on the credit of the bank to provide funds to the seller.Usually, as long as the exporter submits the bill of payment according to the credit conditions prescribed by the written documents, the bank must pay for it unconditionally, so the seller's funds will get.reliable guarantee.The importer can receive all shipping documents according with credit terms after payment.(4)International Factoring

International factoring is a widely used payment in developed countries.It refer to that when exporting goods on commercial credit, the exporter should transfer the invoice of the account receivable and shipping documentsto the factor after delivery, then the exporter can get a majority of receivable funds.If the importer pay over the due or even not pay for the international trade, the factor should undertake the responsibility because in factoring busine, factors shoulder the first payment liability.This is both good to the seller and the buyer, and has developed to an efficient and popular payment.Conclusion:

In a word, International payment is an act of paying off one party’s international debt by some payment instruments in international transactions, it developed from cash payment to bills payment through the bank.There are four types of International payment: remittance, collection, and letter of credit, and international factoring.They are widely used in international transaction nowadays.References:

(1)Hinkelman,E.Cshanghai foreign education pre2009.1.1

(2)《国际支付与结算》 王益平（编者）肖云南（丛书主编）清华大学出版社 北京交通大学出版社

（3）《国际商务英语——理论与实务》 邹勇主编 上海财经大学出版社

（4）《国际保理——金融创新及法律实务》 黄斌 著法律出版社.