2. Letter of credit: It is a written certificate issued by the bank to the exporter (seller) at the request of the importer (buyer) to guarantee payment for the goods.
3. Acceptance is a record that the holder requires the drawee to pay the due amount before the bill expires.
4. Commercial bill is the abbreviation of commercial bill, which is an unsecured short-term bill issued by a financial company or enterprise to raise funds for the issuer.
Difference:
1, the payment situation is different: for letters of credit, the issuing bank must pay first, and the issuing bank bears the first payment responsibility. A commercial paper is a person who issues a bill and delivers it to others. The drawer is the main debtor of the draft. When the holder or payee presents payment or acceptance, the drawer shall pay or accept it immediately.
2. Factoring refers to the behavior that the seller entrusts a third party (the factor) to manage the accounts receivable in order to strengthen the management of accounts receivable and enhance liquidity when the payment is settled by collection or credit in commercial trade. Acceptance is a sight draft without presentment for acceptance. A bill payable periodically after sight shall be presented for acceptance. Bill discount transfers all accounts receivable as required.
3. Different credit degree: The reliability of commercial paper depends on the credit degree of the issuing enterprise, which is a kind of credit paper. Factoring is a comprehensive financial service mode in which a factor provides a series of services, such as financing, buyer's credit evaluation, sales account management, credit risk guarantee and account collection.
Extended data:
Matters needing attention in letter of credit:
1. Whether the letter of credit is a documentary letter of credit depends on whether it is required to follow the transport documents. Regarding the air waybill in the letter of credit, the expression of non-negotiable is non-negotiable, but it can actually be understood as non-negotiable because the air waybill is not a document of title.
2. Guaranteed shipment is common in practice, because there are many problems such as inconsistent name of goods, inconsistent quantity, expired shipment date, expired validity period and inconsistent documents. The letter of guarantee here refers to the contact list of documents submitted by the export company to the bank, which means that the documents do not match, but actually the bank credit is converted into commercial credit.
3. Invisible clauses such as non-effective clauses should be paid attention to. For example, documents can only be discussed after being signed by customers, and notices can only take effect. If the quantity exceeds the amount stipulated in the L/C at the time of delivery, the L/C and D/P can be combined to collect foreign exchange to avoid the discrepancy of documents. Even if partial shipment is not allowed in the L/C, except for those counted by the packaging unit or quantity, such as boxes, yards, dozen pieces, pieces, etc., the quantity is usually allowed to be expanded by 5%.
4. After receiving the letter of credit amendment, the beneficiary has the final decision on whether to accept the letter of credit amendment, and it is not necessary to send a clear notice of acceptance or rejection. The intention of the beneficiary can be judged by whether the documents submitted afterwards are consistent with the amendments. We should pay attention to the shortcomings, such as the limitation of transport ship, the age or route of the ship, the time-sharing interval, the direct delivery of the original bill of lading to the applicant, and the time limit for delivery of documents not in the beneficiary's location or domestic area.
Baidu encyclopedia-commercial ticket
Baidu Encyclopedia-Acceptance
Baidu encyclopedia-letter of credit
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