I. Settlement Method
The combination of the L/C settlement method, remittance and collection method, bank guarantee letter, and various settlement methods.

A. Letter of Credit Settlement The letter of credit (L/C) refers to the product of bank credit's intervention in the settlement of international price of goods. Its emergence not only solved the contradiction between buyers and sellers to a certain extent, but also enabled both parties to obtain the convenience of bank financing through the use of letters of credit to settle payments, thus promoting the development of international trade. Therefore, it has been widely used in international trade and has become a major settlement method in international trade today.

A letter of credit is a conditional payment commitment made by a bank, that is, a written document issued by the bank to the beneficiary with a certain amount and promised to be paid by the prescribed document within a certain period of time, in accordance with the request and instruction of the issuing applicant; or The bank is willing to issue a certificate for the applicant to take out the beneficiary's bill of exchange on behalf of the specified amount, date and bill. It belongs to bank credit and it uses the reverse exchange method.

B. Remittance and Receipt Settlement Methods Remittance and collection are commonly used payment settlement methods in international trade (1). The remittance, also known as remittance, is the method by which the payer passes the bank and uses various settlement tools to send the payment to the customer. A settlement method for people. It belongs to commercial credit and adopts Shunhui law. There are four parties involved in the remittance business: the payer (emitter), the payee (beneficiary), the remiting bank, and the paying bank. There is a contractual relationship between the payer (usually an importer) and the remittance bank (the bank that commissioned the remittance), and there is an agency contract relationship between the remittance bank and the remittance bank (the agent bank of the remittance bank).

When processing remittance business, the remitter needs to fill in the remittance application with the remittance bank. The remittance bank is obliged to issue the remittance document to the remittance bank according to the instructions of the remittance application; the remittance bank is obliged to receive the account Pay the payment to the payee (usually the exporter). However, the remittance bank and the remittance bank are not responsible for the losses that are not caused by their own faults (such as the loss or delay of the payment order caused by the payee's failure or delay in receiving the payment), and are sent to the remittance bank. There is no fault in your work.

(2) Collection and collection is a draft issued by the exporter after the goods have been shipped, with the importer as the payer (with or without accompanying freight bills), and entrusted to the bank of the exporting country to pass the branch at the place of import or Agents on behalf of the importer to collect payment a settlement method. It belongs to commercial credit and uses the reverse exchange method.

The parties to the collection method include the principal, the collection bank, the collecting bank, and the payer. The principal, the person who issued the draft and entrusted the bank to collect the payment from the foreign payer, is also known as the drawer, usually the exporter; the remitting bank accepts the commission of the exporter. The receiving bank of the exporting bank, the collecting bank, which is the bank of the importing bank accepting the collection agent's commissioned payment agent to collect the payment, the payer or drawee, and the payer on the draft is the collection of the payment. The payer, usually an importer. Among the above parties, the principal and the collecting bank, the collecting bank and the collecting bank are all entrusted agency relations. There is no legal relationship between the payer and the collecting bank. The payer pays according to the sales contract. of. Therefore, whether the trustee can receive the payment completely depends on the credibility of the importer, neither the collecting bank nor the collection bank assumes responsibility. When handling the collection business, the client must submit a collection request letter to the collecting bank. In this power of attorney, various instructions are issued. The collection and collection agencies receive the collection instructions from the payer according to the instructions of the trustee. Payment.

C. The banker's letter of guarantee (L/G), also known as the bank guarantee, bank guarantee, or short-term guarantee, refers to the bank's application to the beneficiary on the application of the client. A variety of written vouchers ensure that the applicant performs the contract as stipulated, otherwise the bank is responsible for paying the debt.

D. Combined use of various settlement methods In international trade business, the settlement of payment for a transaction can use only one settlement method (usually), or according to needs, such as different trading commodities, different transaction objects, Different trading practices, the use of more than two settlement methods, or conducive to facilitating transactions, or conducive to safe and timely foreign exchange, or conducive to the proper handling of foreign exchange payments. The common forms of different settlements are: the combination of a letter of credit and remittance, the combination of a letter of credit and collection, and the combination of remittance and bank guarantee or letter of credit.
(1) Combination of L/C and remittance This refers to the purchase price of a transaction, which is partially paid by letter of credit, and the balance is settled by remittance. This combination of settlement methods is often used to allow the trading of certain primary products whose delivery quantity has a certain degree of maneuver. In this regard, with the consent of both parties, the letter of credit states that the amount of the invoice to be paid in advance on the basis of the shipping document or the amount prepaid before the goods are shipped shall be paid by the remittance method after the balance is to be delivered to the destination (port) or the actual number of re-inspections. To use this form of combination, it must first specify what type of remittance method and what kind of remittance method to use, as well as the proportion of the amount to be paid by the letter of credit.

(2) The combination of letter of credit and collection This refers to the purchase price of a transaction, which is partially paid by letter of credit, and the balance is settled by collection. The specific form of this combination is usually: the letter of credit requires the beneficiary (exporter) to open two bills of exchange, part of the payment under the letter of credit is paid by light ticket, and the remaining balance attaches the shipping document to the collection. Under the bill of exchange, payment is collected by spot or forward payment. This kind of practice will make it safer for exporters to collect foreign exchange, and it will reduce the deposits for importers and it will be easier for both parties to accept. However, a letter of credit must specify the type of letter of credit, the amount of payment, and the type of collection method. It must also specify the terms of “the invoice can be paid after all the invoice amount is paid”.

(3) The combination of remittance and bank guarantee or letter of credit.
The form of remittance used in conjunction with bank guarantees or letters of credit is commonly used for the settlement of payments for complete sets of equipment, large-scale machinery and large-scale transportation means (aircraft, ships, etc.). Such products, with large transaction amounts and large production cycles, often require the buyer to prepay part of the purchase price or deposit by means of remittance. The remaining majority of the purchase price will be paid in installments or by delays by the buyer in accordance with the terms of the letter of credit or open guarantee letter.

In addition, there are forms of remittance and collection, collection and standby letter of credit or bank guarantee. When we carry out foreign economic and trade business, we have to choose which kind of combination we can decide on.

Second, bill risk and prevention
As an important payment certificate in international settlement, the bill is widely used internationally. Due to the variety and diversity of bills, coupled with the fact that most domestic residents have little exposure to foreign bills and lack discriminatory capabilities, there are also many risks involved in the use of bills.

A. In the risk prevention of bills, pay attention to the following points:
1. Prior to trading transactions, it is important to understand the creditworthiness of customers and be aware of them before they occur. This is especially true for new customers with unclear credit standing and turbulent customers with foreign exchange tensions, backward areas, and national situations.
2. The bills submitted by merchants must be entrusted to the bank in advance to verify the bills, so as to ensure the safe receipt of foreign exchange.
3. Before the transaction is concluded, the buyer and the seller must sign a secure, equal and mutually beneficial sales contract.
4. Before the bank can collect the ticket, it can't be shipped prematurely to avoid the purchase of goods.
5. Even if you receive a cheque from the bank that is the best credit bank in the world, it does not mean that you will receive payment in the future. In recent years, fraudulent cases of fraudulent use of forged papers and remittance voucher by foreign unscrupulous traders have repeatedly occurred, and the number of cases has been on the rise. This can not be taken lightly.

B. Risks and Prevention of Bills of Exchange In the course of the use of bills of exchange, in addition to paying attention to the above, we must also pay attention to the principles that must be observed in issuing, accepting, and using bills of exchange:
1. The unit that uses the draft must be a legal person who opens an account in the bank;
2. The issuance of drafts must be based on legal commodity transactions and the issuance of drafts without commodity transactions is prohibited;
3. After the bill has been accepted, the acceptor, the payer, is liable for paying the ticket unconditionally;
4. Except for discounting to banks, bills of exchange are not allowed to be transferred. (Note: This provision has been broken by later bank settlement methods).

C. How to identify the true and false promissory notes 1. The genuine ticket is printed on special paper. The paper is of good quality and has certain anti-counterfeiting measures. The fake tickets can only be printed on ordinary paper in the market. The paper quality is poor and the ratio is generally lower. The paper used for the ticket is thin and soft.
2. The ink formulation for printing the genuine ticket is confidential, and it is difficult for the fraudster to obtain it. Therefore, the ink can only be printed with similar colors of ink. This has a certain difference between the actual ticket price and the ticket face.
3, the true ticket number, font specifications and tidy, and some fake ticket numbers, fonts are not aligned, uneven intervals.
4. Since it is illegally printed, the signing of a fake ticket will inevitably be counterfeited, which is inconsistent with the reserved signature held by the bank.