INSTRUMENTS OF PAYMENT - BANK QUARANTEES

Abstract

In carrying out foreign trade payments, there
are possibilities of using a wide range of instruments..
Every sinlge instrument has its own specificities
that we will consider in the paper. By far
the most commonly used instrument of international
payment is a documentary letter of credit.
In addition to letters of credit and “traditional”
payment instruments - waiting and bills in foreign
trade transactions there is a possibility of payment
bank transfer, which is mainly used for advance
payments (payments in advance, before receipt
of the goods), which carries certain risks for the
buyer. There is also the possibility of documentary
collection - the so-called documentary collection.
When any instrument is the reverse order of
strokes of remittances advance. This carries the
risk that the seller sends the goods in advance,
and in particular sends the document to the collection,
and it is charging when the buyer agrees.
Payment instruments are the subject of this paper.