Group 6 Aji Widiatmaja 10211141024 Rachmad Wijanarko 10211141033 Agha Abraham 10211141034 Editya Eka Novridian 10211141042

Accepts and hold deposit To honour drafts cheques and bill of exchangedrawn on them Grant advances in the form of loans and over drafts Keep customer accounts Transfer funds (payments or investments) Handle foreign currency transaction Issue letter of credit Collect payments Finance export import

Current account : The account into which a client pays his trading recipe and on which he draws his cheques. Deposit account : Surplus funds from the current account are held in this, and receive interest. Interest : The charge or profit due for lending. Cheque : An order in writing from a person to his bank to pay on demand a certain sum to a named person Bill of exchange : An order in writing from one person to a bank or to another person, to pay on demand or at a given date, a certain sum to the person named in the bill. Letter of credit : An arrangement with a bank by means of which a buyer guarantees payment to a seller on fulfilment by the seller of certain agreed conditions.

Bill of exchange : An order in writng from one person to a bank or to another person, to pay on demand or at a given date, a certain sum to the person named in the bill. Executor : Person appointed to carry out the wishes of another person deceased. Overdraft: A debit balance on a bank customers current account. This be authorised by the bank. Bankers draft : A draft or cheque drawn by one bank on another. Bankers transfer: Transfer of money from the bank account of a debtor to the bank account to his creditor by order of the debtor.

Opening an account
Please open an account for us in the name of John Smith & Co.

Payment instructions
Please transfer $100 to the A Bank to the credit of Clark Sons L, debiting no 1 account.

Accounting and special instructions

Will you please inform us what service are covered by your entry special charges dated 2 january.

Bank service on payments in foreign trade include: Handling of shipping documents Collection of payments Observance of buyers conditin of purchase Discounting bills of exchange Loan to exporters Acting as agents for foreign banks and their customers

Simple transference of money from the bank account of a buyer in his own country to the bank account of the seller in the sellers country.

The bill is an order in writing from a creditor to a debtor to pay on demand or on a named date a certain sum of money to a person named on the bill. Process: The bill is drawn from a creditor to a debtor, and sent to the debtor The debtor accepts by signing his name on the face of the bill The bill becomes legally binding, and acceptor must meet it before the due date

Letter of credit is the most generally used method of payment in the export trade today. It is ideal for individual transaction or for a series, makes trade with unknown buiyers easy, gives protection to both seller and buyer and overcomes the credit gap.

A letter of credit start with the buyer Buyer instruct his bank to issue the L/C for the amount of the purchase and in favour of the seller. (pic) The instruction, or form, contains full details of the transaction as agreed between buyer and seller. The buyers bank sends these instructions to its agent in the sellers country. On receiving these instructions, the agent bank writes to advice the seller of the credit. The seller can now execute the buyers order, knowing that when he has done so, the money will be paid at once by the agent bank.

Bills: (1) The buyer writes to the seller

Bills: (2) The seller writes to the buyer

Please draw on us for the amount of your invoice and attach the documents listed below to your draft In accordance with our (terms of payment) (agreement) we have drawn on you at 30 days sight for the amount of the enclosed invoice

Bills: (3) Letter to and from the bank(Seller-to his bank)

Will you please forward the enclosed sight draft on Messersto The Regal Banking Co. of Toronto, Canada, with instructions to surrender the attached documents on payments of our bill

(seller-to foreign bank)

Our agents in New York will shortly be sending you the shipping documents covering a consignment of books. Will you please release these documents to Messers against their payment of the attached sight draft in them for $3,000. Please hold the funds pending disposal instruction.

(buyer-to is bank)
Please note that we have domiciled the following acceptances with you: Will you kindly honour them at due date and advise us at time of payment.