What are factoring business and bill discount and letter of credit business?

Generally speaking, the so-called factoring business means that after exporting goods, the exporter transfers the right of income to the factoring company, and at the same time gives part of the income (discount) to the factoring company, so as to obtain the financing of the factoring company without recourse.

The so-called bill discount refers to the behavior that the holder transfers the proceeds of the bill to the discounter with recourse through discount (bearing certain discount interest) to obtain cash.

The so-called letter of credit is a common way of settlement in international trade-it is a conditional payment promise of the issuing bank to the beneficiary (exporter), that is, the issuing bank promises to pay the beneficiary only if the beneficiary acts in strict accordance with the provisions of the letter of credit and submits documents that meet the requirements of the letter of credit.

Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.