Mitigating Techniques for Commercial Risk/Documentary Draft Collection - Revision history

wikademia>Dr. Eme: moved Archive:Mitigating Techniques for Commercial Risk/Documentary Draft Collection to Mitigating Techniques for Commercial Risk/Documentary Draft Collection over redirect

2009-08-12T19:27:53Z

moved Archive:Mitigating Techniques for Commercial Risk/Documentary Draft Collection to Mitigating Techniques for Commercial Risk/Documentary Draft Collection over redirect

← Older revision	Revision as of 19:27, 12 August 2009
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wikademia>Wikademia: moved Mitigating Techniques for Commercial Risk/Documentary Draft Collection to Archive:Mitigating Techniques for Commercial Risk/Documentary Draft Collection

2009-05-25T23:19:15Z

moved Mitigating Techniques for Commercial Risk/Documentary Draft Collection to Archive:Mitigating Techniques for Commercial Risk/Documentary Draft Collection

← Older revision	Revision as of 23:19, 25 May 2009
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wikademia>Wikademia at 20:17, 19 April 2009

2009-04-19T20:17:23Z

← Older revision		Revision as of 20:17, 19 April 2009
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	~~==Documentary Draft Collection==~~
	This type of document is archaic--if you haven’t seen it before, it may not make much sense. A documentary draft or bill of exchange is very similar to a letter of credit in that it is an agreement between a buyer and seller. (A simple check is the most familiar type of draft to most people.) Documentary drafts are still widely used, however, in many countries whose commercial law is based upon the Napoleonic Code. They were primarily used in domestic commerce as a way of facilitating transactions between individuals and companies who had faith in one another. The use of documentary drafts in global commerce began as a result of trade between companies in countries whose commercial law was based upon the Napoleonic Code, and they were also used in the United States. Using a draft is a multi-step process:		This type of document is archaic--if you haven’t seen it before, it may not make much sense. A documentary draft or bill of exchange is very similar to a letter of credit in that it is an agreement between a buyer and seller. (A simple check is the most familiar type of draft to most people.) Documentary drafts are still widely used, however, in many countries whose commercial law is based upon the Napoleonic Code. They were primarily used in domestic commerce as a way of facilitating transactions between individuals and companies who had faith in one another. The use of documentary drafts in global commerce began as a result of trade between companies in countries whose commercial law was based upon the Napoleonic Code, and they were also used in the United States. Using a draft is a multi-step process:
	:1. A seller writes out a draft in his/her own favor (to his/her own account).		:1. A seller writes out a draft in his/her own favor (to his/her own account).

wikademia>Wikademia: Text replace - 'TF3.5' to 'ntnes'

2009-04-10T17:26:29Z

Text replace - 'TF3.5' to 'ntnes'

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	==Documentary Draft Collection==		==Documentary Draft Collection==

wikademia>Wikademia: Text replace - 'Category:International Business' to 'Category:International business'

2009-04-09T05:16:43Z

Text replace - 'Category:International Business' to 'Category:International business'

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	<div style="float:right;">[[Mitigating Techniques for Commercial Risk/Letter of Credit\|Prev]] \| [[Mitigating Techniques for Commercial Risk/Accounts Receivable Financing-Transference or Mitigation\|Next]]		<div style="float:right;">[[Mitigating Techniques for Commercial Risk/Letter of Credit\|Prev]] \| [[Mitigating Techniques for Commercial Risk/Accounts Receivable Financing-Transference or Mitigation\|Next]]

	[[Category:International ~~Business~~]]		[[Category:International business]]

wikademia>Wikademia: 2 revisions

2009-04-08T04:18:24Z

2 revisions

← Older revision	Revision as of 04:18, 8 April 2009
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24.11.195.94 at 13:24, 28 September 2007

2007-09-28T13:24:02Z

← Older revision		Revision as of 13:24, 28 September 2007
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	The third party will guarantee payment of the draft upon presentation of the proper documents. While some companies would act as guarantors as a favor to special customers or clients, banks became involved as the third party. In certain letter of credit transactions, documentary drafts are also used as a backup to create additional assurance that a buyer will pay his/her obligations to a seller via a third party, in most instances a bank.		The third party will guarantee payment of the draft upon presentation of the proper documents. While some companies would act as guarantors as a favor to special customers or clients, banks became involved as the third party. In certain letter of credit transactions, documentary drafts are also used as a backup to create additional assurance that a buyer will pay his/her obligations to a seller via a third party, in most instances a bank.

			<div style="float:right;">[[Mitigating Techniques for Commercial Risk/Letter of Credit\|Prev]] \| [[Mitigating Techniques for Commercial Risk/Accounts Receivable Financing-Transference or Mitigation\|Next]]

	[[Category:International Business]]		[[Category:International Business]]

wikademia>MSUglobal: New page: {{TF3.5}} ==Documentary Draft Collection== This type of document is archaic--if you haven’t seen it before, it may not make much sense. A documentary draft or bill of exchange is very ...

2007-09-25T19:22:56Z

New page: {{TF3.5}} ==Documentary Draft Collection== This type of document is archaic--if you haven’t seen it before, it may not make much sense. A documentary draft or bill of exchange is very ...

New page

{{TF3.5}}

==Documentary Draft Collection==
This type of document is archaic--if you haven’t seen it before, it may not make much sense. A documentary draft or bill of exchange is very similar to a letter of credit in that it is an agreement between a buyer and seller. (A simple check is the most familiar type of draft to most people.) Documentary drafts are still widely used, however, in many countries whose commercial law is based upon the Napoleonic Code. They were primarily used in domestic commerce as a way of facilitating transactions between individuals and companies who had faith in one another. The use of documentary drafts in global commerce began as a result of trade between companies in countries whose commercial law was based upon the Napoleonic Code, and they were also used in the United States. Using a draft is a multi-step process:
:1. A seller writes out a draft in his/her own favor (to his/her own account).
:2. When the buyer accepts the draft (signed it to accept payment), the draft then becomes a trade acceptance. A trade acceptance is a form of commercial paper that is both endorsable and liquid.
:3. In many countries, failure to satisfy a trade acceptance can lead to an immediate seizure of the personal assets of the acceptor.
:4. In order for the documentary draft to work, a third party acts as a guarantor of the draft.

The third party will guarantee payment of the draft upon presentation of the proper documents. While some companies would act as guarantors as a favor to special customers or clients, banks became involved as the third party. In certain letter of credit transactions, documentary drafts are also used as a backup to create additional assurance that a buyer will pay his/her obligations to a seller via a third party, in most instances a bank.

[[Category:International Business]]