...volume of trade transactions is gradually increasing in the international arena. To secure the international trade payment is particularly very crucial. There are so many factors that may affect the matter of securing payment for an international transaction. Most important among them are the potential risk and cost that the exporters and the importers are willing to face or share between them. There are four methods in international trade payment: Cash in Advance or prepayment; Open Account; Documentary Collection; and Documentary Credit. Under Cash in Advance or prepayment method payment is expected by the exporter, in full, prior to goods being shipped. This is the most secure method of payment for the exporters and consequently the least attractive for importers. On the other hand, open account is the least secure method of payment for the exporters. But it is the most attractive method for the importers. Documentary collection is more secure method for an exporter than open account trading, as the exporter’s documents are sent from the exporter’s bank to the importer’s bank. However, among all the mentioned methods, documentary credit method distributes risks in most balanced way in which both importers and exporters are almost equally protected. Letter of Credit (L/C) or the Documentary Letter of Credit is the most popular international trade payment method in Bangladesh, which covers the issues like potential risk that the parties in international trade namely the importers...
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...3 TRADE FINANCE GUIDE Chapter 1 Methods of Payment in International Trade T o succeed in today’s global marketplace and win sales against foreign competitors, exporters must offer their customers attractive sales terms supported by appropriate payment methods. Because getting paid in full and on time is the ultimate goal for each export sale, an appropriate payment method must be chosen carefully to minimize the payment risk while also accommodating the needs of the buyer. As shown in figure 1.1, there are four primary methods of payment for international transactions. During or before contract negotiations, you should consider which method in the figure is mutually desirable for both you and your customer. Figure 1.1. Payment Risk Diagram Key Points • To succeed in today’s global marketplace and win sales against International trade presents a spectrum of risk, which causes uncertainty over the timing of payments between the exporter (seller) and importer (foreign buyer). • For exporters, any sale is a gift until payment is received. • T herefore, exporters want to receive payment as soon as possible, preferably as soon as an order is placed or before the goods are sent to the importer. • For importers, any payment is a donation until the goods are received. • Therefore, importers want to receive the goods as soon as possible but to delay payment as long as possible, preferably until after the goods are resold to generate enough income to pay the exporter. 4 Cash-in-Advance ...
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...Toyota Payment Options Toyota Financial Services offers you the following payment methods. Pay Online This flexible, free and convenient service allows you to schedule payments online using your bank account. You can schedule a one-time or recurring payment. To use Pay Online, you'll need your full bank account number, including your bank's routing number. To start using Pay Online, follow these steps: 1. Log in to your TFS Account. 2. Click "Payments" at the top and then on "Enroll in Online Payments". If you have not already signed up for a TFS Account, Register Now . Automatic Payments Sign up for the TFS AutoCheque Program, and your monthly vehicle payment is automatically deducted from the bank account you designate. Just fill out an application and we'll get you started. Download an AutoCheque Form in PDF format. To view PDF files you will need Adobe Acrobat ReaderTM Payment by Mail Mail your check along with your statement to the payment address listed on the monthly statement. If your statement is not available and you are not sure where to send your vehicle payment, see Where to Mail Your Payment for address details. Payment by Phone Our automated phone payment system will walk you through the steps needed to make a payment. You can make a payment 24 hours a day by calling (800) 874-8822. There may be a convenience fee associated with phone payments. For further details and program Terms and Conditions, consult the Toyota...
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...Principles of Healthcare Reimbursement Anne B. Casto, RHIA, CCS Elizabeth Layman, PhD, RHIA, CCS, FAHIMA Copyright ©2006 by the American Health Information Management Association. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, photocopying, recording, or otherwise, without the prior written permission of the publisher. ISBN 1-58426-070-X AHIMA Product No. AB202006 Ken Zielske, Director of Publications Susan Hull, MPH, RHIA, CCS, CCS-P, Technical Reviewer Marcia Loellbach, MS, Project Editor Elizabeth Lund, Assistant Editor Melissa Ulbricht, Editorial/Production Coordinator All information contained within this book, including Web sites and regulatory information, was current and valid as of the date of publication. However, Web page addresses and the information on them may change or disappear at any time and for any number of reasons. The user is encouraged to perform his or her own general Web searches to locate any site addresses listed here that are no longer valid. AHIMA strives to recognize the value of people from every racial and ethnic background as well as all genders, age groups, and sexual orientations by building its membership and leadership resources to reflect the rich diversity of the American population. AHIMA encourages the celebration and promotion of human diversity through education, mentoring, recognition, leadership, and other programs. American...
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...and Payment Options Chontil Neville Procurement and Contract Law Professor Levasseur Introduction The government pays to its contractors when they submit invoices containing the prices of the supplies or the services rendered according to the contract’s terms. The invoices also contain any discounted or deducted amounts. The government is obligatory to pay upon deliveries unless they specify a due time to pay. For the purpose of selecting payments methods for the services and products purchased by the government agencies, FAR 32.113 should be referenced (Legal Information Institute, 1992). The purpose of this paper is to discuss the three payments options available to government and their advantages and disadvantages, three elements of the prompt Payment Act; next, it will discuss the key areas of cutting government costs, two revisions to TINA that will decrease the requirements for the government’s procurement of technical data and computer software. In the end, the paper will discuss the Buy American Act’s exceptions. Government Payment Options For purchasing the software for tax returns processing, contacting officers on behalf of Internal Revenue Service’s (IRS) can select various effective payment methods. Contracting officer uses the customary contract financing ref. 32.113 for review and uses it without getting the permission from top management. The Contracting officer can select three payment methods that are progress payment, performance-based payments, and...
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...(Pre-Payment) * Down Payment * Open Account * Documentary Collections * Letters of Credit Consignment Purchase Consignment purchase terms can be the most beneficial method of payment for the importer. In this method of purchase, importer makes the payment only once the goods or imported items are sold to the end user. In case of no selling, the same item is returned to the foreign supplier. Consignment purchase is considered the most risky and time taking method of payment for the exporter. Cash-in-Advance (Pre-Payment) Cash in Advance is a pre-payment method in which, an importer the payment for the items to be imported in advance prior to the shipment of goods. The importer must trust that the supplier will ship the product on time and that the goods will be as advertised. Cash-in-Advance method of payment creates a lot of risk factors for the importers. However, this method of payment is inexpensive as it involves direct importer-exporter contact without commercial bank involvement. In international trade, Cash in Advance methods of payment is usually done when- * The Importer has not been long established. * The Importer's credit status is doubtful or unsatisfactory. * The country or political risks are very high in the importer’s country. * The product is in heavy demand and the seller does not have to accommodate an Importer's financing request in order to sell the merchandise. Down Payment In the method of down payment, an...
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...Executive Summary The main focus of this essay is to discuss the changing trends of consumers’ payment methods and in particular cash usage in the 21st century. This essay discusses the downward trend of cash as a major payment structure and the increase in cashless transactions. We will refer to recent studies by the RBA and personal surveys and data collected and collated by this project team in this report and outlay our findings. Introduction As the demand for newer more convenient methods of payment systems increases, so to does the range of options that become available to consumers. In recent years the need to discover more convenient ways of paying for goods and services has increased and is driven by an ever-demanding consumer market. Our case objective was to find out how much reliance on cash as a payment method was for low value transactions, its usage as a payment system and the populations’ reliance on it. The main findings of this report as obtained from the recent survey, was to find out if cash does remain the most common payment option by consumers for low value transactions. The survey showed a very surprising trend between the younger and the older respondents spending habits and tendencies. Reserve Bank of Australia Survey 2007 and 2010. The Reserve Bank of Australia’s recent study in 2010, which was a follow on and update on their initial survey taken in 2007, took a cross section sample of the market and showed a downward slope of the reliance...
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...The Adoption of Mobile Payments in America Introduction As an essential factor of the development of commerce, transaction methods have been innovated constantly from the earliest bartering mode to advanced electronic modes. Among those, mobile payments are one of the most efficient and promising patterns, matching the requirements of the rapid progress of business fields. With cell phones equipped with the Near-field Communications (NFC) chip, users are capable of completing transactions by simply waving them in front of a NFC-enabled reader (Crowe, Rysman & Stavins, 2010). Generally, in global markets, the value of this type of trade reached approximately $250 billion in 2012 and was forecasted to expand 68% annually. In particular, this carrier has been heavily adopted in Japan and several European countries for years. However, according to a recent survey, the adoption of this technology in the United States has been hindered (Fonte, 2013). The sales of this approach only has less than half of one percent of the market, and the majority of payments are implemented by credit and debit cards. It is confusing that, as the economic center worldwide, America has not dominated the leading position of mobile payments acceptance. Therefore, this report focuses on analyzing the obstacles in the process of spreading and proposing practical solutions. Barriers The obstacles of the popularization mainly originate from the aspects of markets, consumers, and retailers. Referring...
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...Assignment On: International Trade Payment and Finance with Special Reference to Bangladesh Course Title: International Business Course Code- BUS 510 Prepared To: Mr. Ahsan Habib Faculty of BRAC Business School. Prepared By: Md. Mahabubur Rahaman Program- MBA ID- 10364038 Section - 1 Submission Date- 24th December, 2011. [pic] Introduction The international trade activities are grown day by day. This trend is attributable to the increased globalization of the world economies and the availability of trade payment and finance from the international banking community. Although banks also finance domestic trade, their role in financing international trade and payment system is more critical due to the additional complications involved. First, the exporter might question the importer’s ability to make payment. Second, even if the importer is creditworthy, the government might impose exchange controls that prevent payment to the exporter. Third, the importer might not trust the exporter to ship the goods ordered. Fourth, even if the exporter does ship the goods, trade barriers or time lags in international transportation might delay arrival time. Financial managers must recognize methods that they can use to make payment and finance international trade so that they can conduct exporting or importing in a manner that maximizes...
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...customer address. | Address1 | VARCHAR2(100) | First part of street or postal address line | Address2 | VARCHAR2(100) | Second part of street or postal address line | City | VARCHAR2(50) | City of the customer address | ZIpCode | VARCHAR2(5) | Postal/ZIP code of the customer address. This code is often used for searching and sorting. | State | VARCHAR2(2) | State of the customer address. This field is often used for searching and sorting. | Telephone | VARCHAR2(20) | Customer’s contact telephone number | PaymMode_Typical | INTEGER | Stored, typical payment mode of the customer. Related to PaymMode table | LineOfBusinessID | INTEGER | Customer’s type of business. Used for reporting. Related to LineOfBusiness table | ------------------------------------------------- CustTrans All kinds of customer transactions are recorded in this table. In addition to the most common transactions like invoices and payments, also different periodical transactions are stored in this table (exchange adjustment, customer settlement...
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...are referred to as the taxpayers method of accounting 301 Tax Accounting Distinguished from Financial Accounting - two sets of books because two different governing bodies Financial accounting – intended to provide useful information about a business so that management, owners, potential investors, creditors and other interested parties can make well informed investment, credit and other decisions - must prepare according to GAAP - accrual method – events reported in the accounting period in which they are earned or incurred rather than when its paid or received Tax accounting records – focuses on items of income and expense that are important for determining taxable income For external (financial) reporting – GAAP allows a business to choose among various acceptable accounting methods - management interested in making business look successful and thriving Tax accounting – goal is to pay least amount of taxes as legally possible Accounting Periods – pg. 89 - tax year – period of time taxpayers use to calculate taxable income o may or may not be the same as the annual accounting period used for financial reporting purposes o no constitutional requirement that income be calculated on an annual basis 305 Permissible Methods of Accounting – pg. 97 - a business can usually adopt any method of accounting if it clearly reflects its income and the business regularly uses the method in keeping its books o Two most common methods Cash receipts and disbursements...
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...Exercise 15-11 Situation 1 (a) $600,000 ÷ 5.88923** = $101,881 fair lease value payments ** present value of an ordinary annuity of $1: n=10, i=11% (b) $101,881 x 5.88923** = $600,000* lease leased asset/ payments lease liability * rounded ** present value of an ordinary annuity of $1: n=10, i=11% Situation 2 (a) $980,000 ÷ 9.12855** = $107,355 fair lease value payments ** present value of an ordinary annuity of $1: n=20, i=9% (b) $107,355 x 9.12855** = $980,000‡ lease leased asset/ payments lease liability ** present value of an ordinary annuity of $1: n=20, i=9% ‡ rounded for convenience Situation 3 (a) $185,000 ÷ 3.03735** = $60,908 fair lease value payments ** present value of an ordinary annuity of $1: n=4, i=12% (b) $60,908 x 3.10245** = $188,964 lease leased asset/ payments lease liability ** present value of an ordinary annuity of $1: n=4, i=11% But since this amount exceeds the asset’s fair value, the lessee must capitalize the $185,000 fair value instead. Exercise 15-12 Situation 1 Amount to be recovered (fair value) $50,000 ___________________( Lease payments at the beginning ( of each of the next 4 years: ($50,000 ÷ 3.48685**) $ 14,340 ** present value of an annuity due of $1: n=4, i=10% ...
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...Research Report Team Dynasty Group Members: Chen Ming, Lau Man Yan, Leung Chui Ying, Liu Kwan Ho , Ng Pui Sin, Yu Lubin 1) Business problem and research objective According to a marketing research report released by Experian Hong Kong in 2011, Groupon is the leading group buying company in Hong Kong with market share of 62%. It surpasses the second group buying company Beecrazy which only has market share of 13%. Facing the dominance of Groupon in the market, Beecrazy hopes to find effective strategies to help itself improve and gain more market share. Our research aims to discover what consumers care most when choosing group buying company and reveal the business problems of Beecrazy. We will research on four aspects – payment methods, credibility of group purchase platform, platform for sharing, and diversity and abundance of deals. From the research results, we hope to help mangers of Beecrazy to make good marketing and management decisions. 2) Secondary data analysis 2.1. Credibility of Beecrazy Beecrazy’s customers sometimes fail to redeem their deals. According to Headline Daily in July this year, Beecrazy received increasing complaints from its customers. Majority of the complaints were about failing to receive products after buying the discount vouchers online. Some affected customers even reported their dissatisfying experience to the Police. Also, according to Hong Kong Economic Times in 2012, one design of Dior’s necklaces sold on Beecrazy’s website...
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...First International Symposium on Data, Analysis of Current E-Payment Solution in China--Third Party Payment Platform Nie Jin School of Information Management Wuhan University Wuhan P.R.China 430072 Email: nie_jin@yahoo.com from Master Card and Visa [5]. This paper presented that establish an effective credibility guarantee system is important to the e-business development in China. Based on the analysis of different payment systems a third party payment platform is one way to avoid credibility and security pitfalls in e-business monetary transaction in China at present. Abstract—Electronic business and especially electronic payment systems have been flourished in the past decades. Securely transfer monetary value can establish e-business participants’ confidence and facilitate the e-transaction process. Establishing the guaranteed credibility system can effectively strengthen the electronic business growth. This paper presented that setting up an efficient credibility system will improve Chinese e-commerce environment. Implementing the third party payment platform would be one of the effective solutions to Chinese e-business monetary transactions at present. Key words: electronic payment system, third party payment platform, credibility system I. II. Credibility has always been a virtue in Chinese culture. China used to be under central planned economy. Central government controlled the whole nation’s economic activities and guaranteed...
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...to purchase products on there through paypal. This is now the most popular method of online transaction due to its simplicity, security and instant transfer. This is done by the user transferring their money into another users paypal account by digital transferring it. This may also make customers feel safer and more comfortable with buying online as they don’t require inserting their bank details into various different websites as once they sign up through the paypal website it won’t be required again as only the login of your paypal account is required for the transaction of money to occur between the buyer and seller online. NoChex is a payment service available on eBay which lets users gain and make payments securely to each other online through affordable transactions. This may also be done by transferring money from and to bank accounts by also transferring money to another users NoChex account without having to pay many fees when doing so. It may also be done when making payments for purchasing products off other users, but the transfer can only be made if both users have a NoChex account registered along with their credit or bank card details, as they will be put safely onto the account once so the transfer of money can be made efficiently and safely. Credit or debit cards may also be a payment system which is used by ecommerce organisations such as Argos which can be used to make payments online from the buyer to the seller. The card details may only have to be...
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