Types of Payments/Activities

Unit 4.6-Types of Payments

Introduction | Types | Negotiation | Summary | Resources | Activities | Assessment Go to Unit 4.1 | Unit 4.2 | Unit 4.3 | Unit 4.4 | Unit 4.5 | Unit 4.6 | Unit 4.7 | Unit 4.8 | Unit 4.9 Return to International Finance Module 4: Payment Methods

Activity

You are the exporter and have just shipped an order with a letter of credit. Using the following scenarios, determine when you will receive your funds and which bank will send them to you:

Scenario A

Invoice Date: January 15, 2007
Shipping Date: January 22, 2007
Type of LC: 60 Days after Invoice Date

Scenario B

Invoice Date: January 15, 2007
Shipping Date: January 22, 2007
Type of LC: 60 Days after Transport Date

Scenario C

Invoice Date: February 12, 2007
Shipping Date: February 12, 2007
Type of LC: at Sight

Scenario D

Invoice Date: March 19, 2007
Shipping Date: March 24, 2007
Type of LC: 90 days after negotiation by the Confirming Bank

Scenario E

Invoice Date: March 19, 2007
Shipping Date: March 24, 2007
Type of LC: 90 days after negotiation by the Issuing Bank

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