FOREIGN TRADE UNIVERSITY
HO CHI MINH CITY CAMPUS
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ENGLISH PRESENTATION REPORT
TOPIC:
FINANCING IN FOREIGN TRADE
GROUP 19
Member Student ID
Nguy n Văn Thànhễ1501015494
Tr n Quy n Linhầ ề 1501015273
Nguy n Tr ng Nguyênễ ườ 1501015373
Tr n Hoàng S nầ ơ 1501015470
Ph m Hoàng Phúcạ1501015428
Nguy n Minh Th ngễ ắ 1501015488
Nguy n Thanh Ph ngễ ươ 1501015436
Tr n Ng c Thu Linhầ ọ ỳ 1501015271
2
TABLE OF CONTENTS
TOPIC:
FINANCING FOREIGN TRADE
Group 19
1. Payment Terms in Foreign Trade
* Four Principle Means:
- Cash - in - advance
With cash-in-advance payment terms, an exporter can avoid credit risk because payment is
received before the ownership of the goods is transferred.
- Letter of Credit (LC)
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Letters of credit (LCs) are one of the most secure instruments available to international
traders. An LC is a commitment by a bank on behalf of the buyer that payment will be made
to the exporter, provided that the terms and conditions stated in the LC have been met, as
verified through the presentation of all required documents.
- Drafts
A draft may be written with virtually any term or condition agreeable to both parties. A draft
is a check that is drawn on a bank’s funds and guaranteed by the bank that issues it.
- Open account
An open account transaction is a sale where the goods are shipped and delivered before
payment is due, which in international sales is typically in 30, 60 or 90 days.
1.1 . Cash in advance
The seller requires receipt of payment from the buyer before shipping goods. Payment may be
made by wire-fund transfer from the buyer’s bank to the seller’s bank, or by company check,
credit card, or other agreed upon means.
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Method Usual Time
of Payment
Goods
Available
To Buyer
Risk
to
Seller
Risk to Buyer Comments
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