If invoce is amended:

• _{credit note} (sent to customer who is owed moneу, because goods have been returned)

• _{debit note} (sent to customer who owes moneу to seller, because invoice was inсоrrеct)

• _statement of account sent regularly to buyer listing аll invoices, debit/credit notes, amounts of payments made and total to be paid

From buyer to seller:

• _cheque

The Bill of Exchange

• _{Drawn by the exporter and is given to his local bank together with other shipping documents}

• _{This is sent to the importer who pays for the consignment and receives the shipping documents}

• _{The importer may now collect the goods when they arrive}

• _{Document against Paymen}t: importers pays at sight

• _{Document against Acceptance:} payment delayed. The importer writes “accepted” on the Bill of Exchange and sends it back to the exporter’s bank and pays later.

• _{can be discounted (sold to the bank immindiately in return for a fee (at a percentage less than its value). exporter gets money immidiately and importer can be given a credit)}

• _{can be negotiable - when the drawer endorses the bill (write the name of the the owner). To endorse specially - make B/E payable only to the person named on the B/E}

• _{dishonored B/E - the B/E that is not paid on the due date (exporter will protest and go to someone who will take legal actions)}

The Bill of Lading:

• _{a transfer document, most important one in shipping}

• _{the exporter writes the importer}’s name on the bill of lading - it’s document of title - gives ownership of the goods to the person named on it

• _the words «to order» written on it/under the heading «consignee» - means the that it’s a negotiable document (can be traded). In this case it will be endorsed on the back and if the endorsement is blank there will be no restrictions on ownership. Bills are also marked «clean» to indicate that the goods were taken in good condition or «dirty/claused» if the packing or the goods were damaged. This protects the shipping company from claims

Payment:

• _{Commercial invoice} - a document with details if goods, their price and payment day

• _{Pro-forma invoice} - a quotation made a potential purchaser giving details of prices, quantities, discounts, etc. Send on approval. Vital for agent

• _{Custom invoice} - are goods admissible or not, preferential treatment (lower rate of duty)

• _{Consular invoice} - to ensure that goods are not over-priced

Types of payment:

• _{payment on invoice} (may be before, at the same time or after goods are delivered)

• _{payment on statement} (made when the buyer receives a statement of account at a later date, that method used when purchases are made on regular basis)

• _{a regular customer may have an open account with payment typically at 30,60, or 90 days (the risk of non-payment carried by the exporter)}

• _{bill of exchange} (look up to the previous paragraph)

• _{supplier can use the services of a} factor: in return for a fee, the factor pays the supplier a percentage of invoice immediately and the remained when customer pays

• _{if a supplier wishes to receive the payment more quickly, the bill can be} discounted, that is to say, sold to the bank immediately in return for a fee

• _{letter of credit} - a promise made by the buyer’s bank to send a certain sum of money