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C6. Financing Alternatives
C6. Financing Alternatives
Financing Alternatives
Purpose:
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(1) Discounting:
B/E to have been
accepted by the (2) Negotiation: B/E has not
drawee/his bank been presented for payment
or acceptance
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Advance payment
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a- Cash In Advance
When Appropriate
Importer 14
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Third scenario:
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Exporter’s perspertive:
Importer’s perspective:
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Export credit refers to the credit that the seller offers the
buyer in the contract for sale of goods and services (ie a
supplier credit) or credits given to finance such a sale (ie
a buyer credit).
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Credit
Agency
- SUMMARY The export credit agencies
generally only cover the longer
periods, with a minimum of six
months up to two years,
depending on the status of the
importing country, where the
private insurance market is less
competitive. However, for most
OECD countries (with some
exceptions) they are only allowed
to cover the commercial risk on
periods of two years and more.
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