THE ROLE OF ACCEPTANCE IN EXPEDITING EXPORT PAYMENT TRANSACTIONS USING USANCE DOCUMENTARY CREDIT

Redjeki, Finny (2017) THE ROLE OF ACCEPTANCE IN EXPEDITING EXPORT PAYMENT TRANSACTIONS USING USANCE DOCUMENTARY CREDIT. Jurnal Techno-Socio Ekonomika Universitas Sangga Buana YPKP, Vol.10 (1). pp. 21-32. ISSN 1979-4835

Text Jurnal Techno Vol 10 no 1_3.pdf Download (4MB)

Abstract

Surety and rapidity of payment is required for exporters in supporting the smooth operation of business activities. Contract sustainability can always be continued wilh01d any disruption if payment is received relatively fast. It is naturalif Sight DCis chosen as an instrument of payment, given Sight DC is the type of DCthat the Beneficiary 's Bank pay upon being shown where the presented documents condition to the Bank are "Complying Presentation or there is no dispcrepancies. Sight DCexpedites the payment for it can directly be executed by the beneficamy 's bank to the exporter so long it is Complying Presentation. However, there are importers who request DC type to be issued is usance or typeofDC that has a period in terms of payment and this can be agreed so long the unit price of goodscan cover the cost of discounts for payment of Usance DC can relatively be received more quickly by exporters by way of discounted upon having received the acceptance news. Usance DC can be circumvented by way of "Discounto". The discounto can be done after the bank received a "message acceptance" from the Issuing Bank. Acceptance is used as Usance DCdocument to be purchased by the Bank. Acceptance is an intention statement of the Issuing Bank to the exporter to make payment on the due date of a specific amount as per DC requirements. Acceptance is the basis for beneficiay's bank or exporter 's bank to make payment in advance or to provide bailouts to the exporters for the sum shown on the acceptance news after beingdeducted as per discounted amount. In other words, the value paid by the Beneficiaty 's Bank to the Beneficiary (exporter) is the invoice value less the discounted value. Accordingly this news expedite Usance DC payment for the exporter can receive payment from the bank relatively quickly without having to wait for the maturity date

Actions (login required)

View Item