Import Finance Experts Share A List Of The Different Payment Modes Used In Import And Export

Owners of import, export, and trading businesses have to know that there are various types of ways they can get paid. They can come through different channels as well. The speed and reliability at which they will receive their due will depend greatly on the payment method they have chosen as well.

 

Payment Modes Used In The Import And Export Business 

 

Experts in import finance explain below the most common types of payment methods used in the import and export industry:       

Telegraphic Transfer

Also known as TT, this is a way of remitting foreign payments through telegraphic transfer of funds to persons in foreign countries. They are electronic payments of cleared funds that are credited directly to a nominated bank account or financial institution where you can claim it. It is a fast and reliable way for making international payments almost anywhere in the world. Telegraphic transfer is one of the quickest methods of transmitting funds that involves no risk. This is because it involves payment of funds in the foreign centres on the same day as the receipt of domestic currency in the local centre. This means that no interest or capital risks are involved.

Bank Drafts

A bank draft, or demand draft, is a pay order issued by a bank for its own branch or correspondent bank abroad. The bank draft is handed over to the buyer who sends it to the beneficiary. The beneficiary receives payment on presentation of this demand draft to the bank on which the draft is drawn. Banks usually charge a commission for issuing a bank draft and direct the Branch Manager of that country to make payment for the specified amount in foreign exchange to the particular party or beneficiary.

Bank drafts are one of the most popular methods of remittances in the import and export industry. The most noteworthy disadvantage of remittance by draft is the risk of loss of the draft in transit and the transit delay in effecting payment to the beneficiary. 

Bill of Exchange

This payment method pertains to an order drawn by a person upon a bank or another person asking the latter to make payment to a third party. The bill of exchange is prepared by the exporter and sent to the place of importer through a commercial bank along with key documents.

There are two types of Foreign Bill of Exchange:

Ordinary or Clean Foreign Bill. Also called a Clean Foreign Bill of Exchange, this is an ordinary bill of exchange and drawn in case the exporter has sufficient confidence in the credit-worthiness of the importer.

Documentary Bill. A Documentary Bill is sent along with necessary documents to the title of the goods. They can either be documents against payment or documents against acceptance.

By Mary Wickett, a finance consultant, with resource info about import finance from http://www.business.hsbc.com.eg/en-gb/working-capital/productfamily/imports.

Benefits Of Providing A Total Rewards Statement For Your Employees

Plenty of companies are making significant investments in the benefits they want to give to their employees. Even if you are offering an attractive benefits package for your workers, it is still necessary for you to fully educate them about what is included in the package. Your organization might still be missing a relevant requirement, which is a total rewards statement.

Total Rewards Statement – What Is It?

A total rewards statement is a personalized document containing details about the overall value of the financial rewards of an employee – incentives, benefits and his/her base pay. It comes in paper or electronic form. Be reminded though that it won’t just show information regarding the pay an employee receives but also allow the employees to see their total rewards entitlement in one place. Every reward item will be explained comprehensively to make sure that items included in the package are fully understood.

Reasons For Providing A Total Rewards Statement For Employees

Awareness of their current employment package will be improved. Definitely, employees know the amount of pay they receive but oftentimes, they don’t know the overall value of their benefits. Apart from that, they might not also be aware of how these benefits were developed and selected to fit their specific needs. By sharing this information, employees will see very clearly how much they are appreciated in the organization.

Employee engagement will be increased. By knowing that their employer has taken the time as well as made an effort to come up with a very advantageous benefits package, employees certainly will be motivated to perform well. Also, they will be able to relate better with their superiors and colleagues.

The overall performance of the organization will be improved. If employees are happy, productivity will surely receive a healthy boost. Most importantly, company objectives will be met. By cultivating an open communication and a positive work environment, the organization will definitely yield and deliver great results.

Every organization today must consider looking into a great total rewards statement as this is regarded as a very crucial tool for keeping employees very much aware of the value they receive. This will also make them be fully engaged at their work. So contact an engagement team you can work with today. They will review your current rewards, choose the right advantages, as well as provide you with all the relevant resources that will allow your employees to get all the information they may need.

Source: www.personalgroup.com offers employee services in one place. They design your employee services programme around you to make your business happier and more productive.