Letters of credit are divided into two types: clean letters of credit and documentary letters of credit, but the most commonly used one is the documentary letter of credit, that is, a letter of credit with specified documents attached.

Simply put, a letter of credit is a guarantee document that guarantees the exporter to recover the payment, and it is a bank credit.

The choice between forward and sight letters of credit may not necessarily be the one at sight, but depends on the specific circumstances.

If you are doing spot payment and have concerns about the credit of the issuing bank, it is best to ask the customer to arrange confirmation, which becomes "double insurance".

For forward transactions, banks provide discount financing services, but they will charge a discount rate, which is about 0.5% of the letter of credit amount per month. This must be negotiated with the customer when signing the contract and must be borne by the customer.

The TT payment method is settled in foreign exchange cash, and the customer remits the money to the foreign exchange bank account designated by the company. It is divided into front and back TT, and "before and after" is relative to the production schedule or shipping date.

For example, the cooperation between Wang Lin and the Panasonic family is done by TT, that is, the Panasonic family makes the payment first, and Wang Lin then delivers the goods. This kind of transaction is the safest.

If we adopt LC forward or non-confirmed spot for new customers, or adopt forward d/p, d/a or even oa for old customers, there is a way to avoid the risk of foreign exchange collection and avoid the risk of exchange collection.

You can retain or even expand your business by investing in "export credit insurance."

The trade process after signing the contract is stocking, packaging, inspection, customs declaration, shipment, delivery of documents and settlement of foreign exchange.

The entire process of foreign trade is much more complicated than domestic trade.

If it is an LC transaction, the requirements for stocking are higher, because the goods must be delivered on time. Once the delivery date is delayed, the company's losses will be particularly large.

To work in foreign trade business, you must first have an overall grasp of the foreign trade process. The foreign trade business links must be specialized and refined. Documents and shipping knowledge must be actively and deeply studied and summarized on the basis of an overall understanding. This is the only way to truly become a foreign trade master.

road.

Many people in Aixiu Group are also learning this foreign trade knowledge while working.

Wang Lin often explains to everyone the problems that exist in foreign trade transactions, just to avoid pitfalls in transactions.

The big order incident that Li Wenjuan encountered today made Wang Lin feel that the company's knowledge training on foreign trade transactions could be further strengthened.

Victor is a real businessman, and he attaches the same importance to the rigor of contracts as Wang Lin and others.

The two parties negotiated for almost half a day before finalizing various transaction details.

Victor placed an order for 10 million packs of diapers, including various large, medium and small models, as well as different models for male and female babies. The number of packs of each model and the number of pieces in each pack are all marked in detail.

The total amount of this order is as high as 400 million yuan!

After all deliveries are completed, Wang Lin can earn 200 million yuan!

The quantity of this order is the same as the quantity of diapers ordered by the Panasonic family.

The difference is that Victor requires Aixiu Group to deliver all 10 million packs of diapers within half a year!

This made Wang Lin excited, but also extremely stressed!

As long as the process is compliant and the transaction is normal, Wang Lin is not worried about the other party's tricks.

As for the other party getting so many diapers, how to sell them, through which channels to sell them, and whether they can be sold, that is not Wang Lin's business.

To Victor, Wang Lin is just a supplier.

In addition, Victor also ordered one billion sanitary napkins, and only the wing-type sanitary napkins.

In developed European countries, there is no market for straight sanitary napkins!

This gap is huge!

Even straight sanitary napkins are not popular in China yet!

Western developed countries have begun to phase out straight sanitary napkins and have begun to popularize wing-type sanitary napkins.

One billion sanitary napkins cost 80 million yuan!

Wang Lin can make a profit of almost 40 million yuan from this.

Victor placed a total order of 480 million yuan with Aixiu Group!

After the business was settled, Victor held Wang Lin's hand and shook it as hard as last time, as if Wang Lin was shaken apart and his enthusiasm and friendliness could not be shown.

With a smile on his face, Wang Lin resisted the pain in his arms and shook hands with Victor.

"Mr. Wang Lin, you must come to our hometown in Moscow, or come to my residence in the south of France. I will entertain you well!" Victor is a sociable person. His enthusiasm and hospitality are just out of the ordinary.

to general social etiquette.

This kind of politeness is just like when meeting a Chinese, you say, come and sit at home, and then leave after eating? That’s pretty much what it means.

Wang Lin promised, but he didn't take it seriously.

At least in the short term, he has no plans to go to southern France or Moscow.

Wang Lin proposed to invite Victor to have dinner with him in the evening.

Victor said that he already had an appointment, and Wang Lin was not the only one who signed a contract at the Canton Fair.

Wang Lin saw Victor off, turned around, and high-fived Deng Dabao, both of whom laughed.

Other employees were also beaming and refreshed.

The organizing committee erected an eye-catching sign at the entrance, which detailedly marked the exhibition categories and company names in each area. It also printed a large number of brochures and distributed them free of charge at the door.

Wang Lin’s diaper and sanitary napkin product trademarks and advertising pictures are printed on the cover!

After seeing the manuals and signs, many foreign businessmen learned that sanitary napkins and diapers were wholesaled here, and foreign businessmen in need came to inquire one after another.

Wang Lin’s diaper booth attracted an endless stream of foreign businessmen who came to visit and inquire.

Several foreign businessmen among them have been consulting, asking questions very carefully, and never left during lunch.

Wang Lin and the others were about to have lunch. After the fast food was delivered, Wang Lin invited the foreign businessmen to join them for dinner.
Chapter completed!