This eCourse consists of two modules. Module 1 describes how documentary collections work, distinguishes the different types, outlines the role of the parties involved, and lists the benefits and drawbacks of this method of payment. It also explains the Uniform Rules for Collections (URC), the internationally recognized rules covering collection operations for documentary collections.
Module 2 looks at open account trading, how it works, the risks it poses for exporters, and how they might go about reducing their exposure to some of those risks. The module also describes the role of SWIFT’s Trade Services Utility (TSU) in open account trading.
On completion of this course, you will be able to:
- Describe how documentary collections facilitate payment in international trade
- Outline the requirements of the key sections of the ICC’s Uniform Rules for Collections (URC)
- Describe how trading on open account takes place terms
- Outline the role of SWIFT's Trade Services Utility (TSU) in open account trading
- Identify the risks of open account trading and how sellers can reduce their exposure to these risks
Module 1: Documentary Collections
Topic 1: Overview of Documentary Collections
Topic 2: Uniform Riles for Collections (URC 522)
Module 2: Open Account Trading
Topic 1: Overview of Open Account Trading
Topic 2: SWIFT’s Trade Services Utility (TSU)
Topic 3: Risks of Open Account Trading