clean collection

A remittance is an act of sending money, either in person or by electronic means, to someone else. Remittances are a form of international transfer of funds to individuals or companies. They are often sent by migrants to their families in their home countries, as a form of support. Remittance services are provided by banks, money transfer companies and other financial institutions.

Remittances are an important part of the global economy, with many countries relying on them for development and aid. According to the World Bank, remittances have grown steadily since 1990 and have become an important source of income for individuals, households and countries alike. In 2017, migration and remittances to developing countries reached their highest level ever, with $466 billion in recorded flows.

The main advantages of sending remittances are:

1. Speed: Sending money electronically is often much faster than sending cash. It is often possible to transfer money within 24 hours, which is not possible with conventional methods.

2. Low cost: As a result of competition in the market, the cost of sending remittances has been steadily declining. Fees are often lower than the cost of bank transfers or international money orders.

3. Convenience: Sending money to other countries is often easier than sending cash or travelers checks. Remittances can be sent quickly and securely with the help of a mobile phone.

4. Flexibility: Most remittance services offer various payment and delivery options, such as door-to-door delivery, bank transfers, cash pickups and mobile wallets.

5. Security: Using a regulated remittance service is much safer than sending money through the mail. The funds are usually tracked until they reach their destination.

Despite these advantages, there are still some risks involved when sending remittances. Exchange rates can fluctuate, and fees may vary from one service to another. Furthermore, corruption is a problem in some countries, so it is important to choose a service that is trustworthy and safe.

In conclusion, sending remittances is a convenient and cost-effective way to transfer money overseas. It is often much faster than traditional methods, and can be done safely with the help of a regulated service provider. For these reasons, remittances are an essential part of the global economy and are likely to remain so in the future.

Letter of Credit（L/C）is a document issued usually by a bank on behalf of a customer that guarantees payment to a beneficiary subject to the terms and conditions stated in the credit. The issuing bank promises to honor a standby commitment to pay the beneficiary a specified amount at a specified date or on demand up to the maximum amount allowed by the credit.

A letter of credit is an attractive method of payment for both the buyer and the seller because transaction costs are minimized and risk is minimized. The buyer can be assured that he will receive the goods he is purchasing and the seller is assured of receiving payment. The bank guarantees the payment so both parties are equally protected.

The buyers bank issues a letter of credit which specifies the terms of the transaction such as place of delivery and maximum amount to be paid (denominated in the currency of the issuing bank). The issuing bank may ask for other documents such as the commercial invoice, bill of lading or certificate of origin before it will pay the beneficiary. Once the documents have been presented to the issuing bank and have been found to be in compliance with the terms of the letter of credit, the issuing bank will pay the beneficiary the amount stated in the credit.

An important element to a successful transaction is the guarantee from the issuing bank that it will honor its commitment to pay the beneficiary. This assurance is the primary benefit of a letter of credit and provides a secure method to facilitate international trade.