Establish the most appropriate methods and terms of payment and required documentation to ensure timely payment for the sale of goods and/or services and to facilitate external financing.
Task 4 Introduction [PDF] 06.27.07
Knowledge Statement 1:
Knowledge of Methods of Payment: Letters of Credit, Documentary Collections, Cash in Advance
Knowledge Statement 2:
Knowledge of Commercial, Economic, and Political Risks of Buyer and Buyer’s Country
Knowledge Statement 3:
Knowledge of International Regulations Published by the International Chamber of Commerce (Paris) Governing International Transactions and Methods of Payment: Incoterms, UCP, Arbitration, Uniform Rules for Collection
Knowledge Statement 4:
Knowledge of Methods of Funds Remittance: Checks, Banker’s Drafts, SWIFT Transfers
Knowledge Statement 5:
Knowledge of Types of Letters of Credit: Confirmed/ Unconfirmed, Transferable, Standby
Knowledge Statement 6:
Knowledge of Types of Payment: Sight, Deferred, Acceptance
Knowledge Statement 7:
Knowledge of Documentation Requirements (Commercial Invoices, Transport Documents, and Documents Relating to Services)
Knowledge Statement 8:
Knowledge of Related Financial and Legal Costs ( Bank Charges, Insurance Premiums, Legal Fees)
Knowledge Statement 9:
Knowledge of Communication of Letters of Credit, Collections, and Associated Documents Electronically via the Internet (eUCP, SWIFT)
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