Westpac International Logistics Co., Ltd.

Parties in two different countries, whether between individuals, between units, between enterprises, or between governments, need to use banks to handle foreign exchange receipts and payments between the two countries because of commodity sales, service supply, capital allocation, and international lending. It is called international settlement. International trade often occurs out-of-loan settlement to settle the creditor's rights and debts between buyers and sellers, which is called international trade settlement. It is a settlement based on the two settlements of commodity trading goods and foreign exchange, also known as tangible trade settlement. International trade settlement methods are generally divided into: letter of credit settlement method, remittance and collection settlement method, bank guarantee letter, combined use of various settlement methods, etc.

Letter of Credit Settlement

Letter of credit (L/C for short) is a product of bank credit intervening in the settlement of international goods purchases and sales. Its emergence not only resolves the contradiction of mutual mistrust between buyers and sellers to a certain extent, but also enables both parties to obtain the convenience of bank financing in the process of using the letter of credit to settle the payment, thereby promoting the development of international trade. Therefore, it is 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 the bank, that is, a written document issued by the bank to the beneficiary with a certain amount and promised payment within a certain period on the basis of the prescribed documents according to the request and instructions of the applicant; or The bank is willing to purchase the beneficiary's bill of guarantee on behalf of the applicant under the conditions of the prescribed amount, date and documents. Belonging to bank credit, the reverse exchange method is adopted.

Remittance combined with bank guarantee or letter of credit

The form of remittance used in combination with bank guarantees or letters of credit is often used in the settlement of payment for complete sets of equipment, large machinery and large transportation vehicles (aircraft, ships, etc.). For this type of products, the transaction amount is large and the production cycle is large. The buyer is often required to prepay part of the purchase price or deposit by remittance, while most of the remaining purchase price is paid by the buyer in installments or late payment in accordance with the provisions of the letter of credit or by issuing a letter of guarantee.

In the actual international trade activities, some manufacturers may not have a US dollar account or the ability to receive and pay foreign exchange, but they have foreign trade needs. Under these conditions, we can entrust our company Westpac International Logistics to facilitate the completion of foreign trade orders. , Our company can act as an agent for foreign trade customers to receive and pay foreign exchange, U.S. dollars and letters of credit.