- International Trade Payment Methods
  - Remittance
  - Letter of Credit
  - Collection
    - Definition
      - Written order to pay a certain sum
      - Tool of payment (financial document)
    - Parties Involved
      - Drawer (Exporter/Principal)
      - Payee (Importer/Payer)
      - Banks
        - Remitting Bank
        - Collecting Bank
    - Process of Collection
      - Exporter and Importer Agreement
      - Preparation of Shipment and Documents
        - Shipping Documents
          - Invoice
          - Bill of Lading
          - Insurance Policy
        - Bill of Exchange
      - Submission to Remitting Bank
      - Transfer to Collecting Bank
      - Payment or Acceptance by Buyer
      - Release of Shipping Documents
      - Transfer of Payment to Exporter
    - Types of Collection
      - Clean Collection
      - Documentary Collection
        - More secure due to shipping documents
      - Subtypes
        - DP (Document against Payment)
          - Immediate payment required
        - DA (Document against Acceptance)
          - Future payment after acceptance
    - Usage of Collection
      - Clean Collection for additional fees
      - Documentary Collection for goods payment
    - Key Differences from Letter of Credit
      - Role of banks in collecting payment
      - No guarantee of payment in collection
    - Assignment
      - Review collection process and key points
      - Compare letter of credit and collection
        - Similarities and differences