Thuyết trình môn thanh toán quốc tế term of international payment

Currency of payments Kinds of currency  Based on use place  World currency  International currency  National currency  Based on transference  Free convertible currency  Transferab

TERM OF international payment

• Nguyễn Văn Quý

• Nguyễn Bá Hùng

• Trần Thị Minh Ngọc

• Đỗ Hương Giang

• Nguyễn Thị Huyền Trang

• Đặng Hải Linh

• Phan Hà Anh

Main contents

1 Currency of

payments

2 Time of payment

3

Currency of payments

The payment currency can be any one of

the following currencies:

USD - US dollars

AUD - Australian Dollars

CAD - Canadian Dollars

NZD - New Zealand Dollars

GBP - British Pound

EUR - Euro

SGD - Singaporean Dollars…

This will depend on which currency the

client used to pay for the project;

whichever currency was used will be

displayed on the project's brief page.

Currency of payments

Kinds of currency

 Based on use place

 World currency

 International currency

 National currency

 Based on transference

 Free convertible currency

 Transferable currency

 Clearing currency

 Based on use purpose

 Payment currency

 Account currency

 Based on survive form

 Credit currency

 Cash

MAIN FACTORS EFFECT TO USING KINDS OF CURRENCY IN INTERNATIONAL PAYMENT

 Currency the client used to pay for the project

 Position of currency in international finance market

 Term and policy

 Business sector currency is used

time of payments

Payment before delivery

This is the form of payment immediately after signing the

contract or after exporter accepts the order of the importer,

importer pays part or all of the contract amount.

time of payments

Payment before delivery

 Importer pays exporter in advance X days from the

date of signing the contract, or after the effective date

of the contract

• Meaning : Importer provides credit, advances payment

to exporter that facilitae to get enough capital to export

their goods.

• Time of advance credit for export is calculated from the

date of advance payment to the date exporter refunds

the advance The amount of advance payments

depends on the demand of exporter and the ability of

providing credit.

• Price of contract in advance payments is lower than

price of contract in payment delivery This difference is

the interest arising on the advance amount that the

seller will have to reduce the price for the buyer

time of payments

Payment before delivery

Formula to calculate

P e = 𝑃𝑢[ 1+𝑅 𝑁 −1]

𝑄

P e : Discount Price

P u : Deposit Value

R : Interest of credit period ( year, month)

N : Time to provide credit to exporter from importer

Q : Quatity of contract goods

EX: A contract valued at 500.000 USD with

1000 ton, a payment of 20% contract value will be made by buyer before 6 months, interest is 5% Calculate the price discount the buyer can get at 1 ton.

Solution:

Pu = 500.000 x 20% = 100.000

R = 5%

N = 6 months

Q = 1000 ton

=> Pe = 100000[ 1+5%

6 −1]

1000 = 34$

 Importer pays exporter in advance X days from the date of signing the

contract, or after the effective date of the contract

time of payments

Payment before delivery

 Importer pays exporter X days before delivery date

• Meaning: Ensure the performance of the contract of the

importer

• Delivery date is the first delivery date specified in the contract.

• Short-term for payment : 10-15 days Exporter will only

delivery goods upon receipt of the notice of advance payment

• No interest applied

time of payments

Payment before delivery

 Importer pays exporter X days before delivery date

In case 1: The amount depends on higher than normal contract price

P u : Payment in Advance

Q : Quality of good

P H : Higher contract price

P T : Normal price

Formula to calculate

P u = Q(P H – P T )

EX: ABC company signs a contract to sell

2000 HP laptops at USD 1500 per PC whereas the normal market price for similar products is USD 1230 per PC

Solution:

Pu = cccc

R = ccc

N = cccc

Q = cccc

=> Pu = 2000(1500 – 1230) = 540000$

time of payments

Payment before delivery

 Importer pays exporter X days before delivery date

In case 2: Buyer's creditworthiness

P u : Payment in Advance

T HĐ : Total contract amount

N : Duration

T r : Penalty in case of nonperformance

Formula to calculate

Seller don’t believe in avaiable payment of buyer and require buyer advance payment related to banking

time of payments

Payment at sight

 Buyer pay money on shipment :

The buyer pays the seller immediately after fulfillment of

the delivery obligation

According to Incoterm 2000 of ICC:

EXW : Seller completely delivery in their place:

warehouse, factory,…

FAS : Seller completely delivery when the goods placed

alongside ship but didn’t pick up in ship

DAF : Seller completely delivery at frontier

FCA : Seller completely delivery when the goods

deliveried for carrier

time of payments

Payment at sight

 After successfully delivery on transport :

The buyer pays the seller immediately upon fulfillment of the delivery

obligation on the means of delivery of the place of delivery of the goods

Ex : FOB : on board

FOD: At the seaport

 Payment on Documents :

The buyer pays immediately to the seller immediately after receipt of

payment documents from the seller

There are 2 ways:

- At sight

- Pay within 5 to 7 days of seeing the vouchers

 Payment on Receip

The buyer pays to the seller immediately upon receipt of the goods at

the designated place or port of destination.

time of payments

Payment after sight

After a certain of time exporter has obligations to delivery good

as they agreed in the contract, then importer will pay :

 Buyer pays after certain number of days, from the date of

receipt be informed, seller has obligations to delivery to the

specified place

 The payment was made after a certain number of days since

the date of importer gets document.

 The buyer pays after certain number of days from finished

receiving goods

 Helps removing the risk in buying After receiving the

goods importer should check it before actually paying

=> Paying After Delivery is only available for number of

specified transactions at a time

place of payments

• L/Cs are normally payable at both the issuing or the advising bank

• When a documentary collection is used as a method of payment:

the bank transfer the payment according to the instructions

originating from the seller

• when payment by cheque is agreed upon, it must be made clear

whether the seller will accept a commercial cheque or a bank cheque

• In the case of bank transfer, the place of payment must be decided

by the parties involved

• The question of where the buyer fulfills their payment obligations in

connection agreement is payment terms is always a matter for the

parties to agree

methods of payments

Payment can be devided into two main categories.

• Clean payment is the buyer must pay according to the contract

after receiving the seller’s invoice specifying the payment date.

• The documentary payments are divided into documentary

collections, when the buyer has to pay or accept a bill of exchange

in order to obtain access to the documents for collection, or LCs

where the seller also is guaranteed payment if the documents

presented are in accordance with the terms of the LC

What is different between COD and Payment After Delivery ?

The same COD and Payment After Delivery are both pay when

customers receive goods

With Payment After Delivery, customers only have to pay when

they satisfy with goods and have time to change their decision in

few days without charge, different from COD, once they get

goods, they have to pay immediately

No correct answer.

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2

3

How long term for payment to ensure the

performance of the contract of the importer?

5-10 days 10-15 days 15-20 days

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2

3

Which of the following is not a

feature used to classify currency?

Based on transference

Based on use purpose

Based on policy

Based on use place

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