Types of international trade settlement bills: The bills used in international trade include bills of exchange, cashier's checks, and checks, with bills of exchange mainly used. A bill of exchange is a written unconditional payment order issued by one person to another person, requiring the other party (the person receiving the order) to pay a certain amount to a person or a designated person or a person holding the bill at sight or at a regular time or at a determinable future time. Bills of exchange can be divided into the following types: According to the drawer - bank draft, commercial draft. A banker’s draft is a draft in which both the drawer and the payee are banks. A commercial draft is a draft drawn by a corporate legal person, a company, a firm or an individual, and the payee is another firm, individual or bank. Depending on whether there are accompanying documents - clean draft, documentary draft. Clean bill (clena bill) itself does not come with shipping documents, and bank drafts are mostly clear drafts. Documentary bill, also known as credit bill and bill of exchange, is a bill of exchange that needs to be accompanied by bills of lading, warehouse receipts, insurance policies, packing lists, commercial invoices and other documents before payment can be made. Commercial bills are mostly documentary bills. Often used in international trade. According to the time of payment - sight bill, demand bill. A sight bill (demand bill) means that the holder pays the payer immediately after he presents it to the payer. It is also called a demand bill. Usance bill (time bill, usance bill) is paid after a certain period of time or on a specific date after the bill is issued. In a usance draft, a certain date is recorded as the maturity date. If the payment is recorded on the maturity date, it is a time draft. If the payment is recorded within a certain period after the date of issue, it is a time bill; , is an installment bill; if the face amount is divided into several parts and the maturity dates are specified respectively, it is an installment bill. According to the acceptor—commercial acceptance bill, bank acceptance bill. A commercial acceptance bill is a usance bill with any firm or individual other than a bank as the acceptor. Banker’s acceptance bill The acceptor is a bank’s usance bill. According to the circulation area─domestic money order, international money order. A promissory note is a document issued by one person to another person, guaranteeing that a certain amount of money will be paid unconditionally to the holder on sight or at a foreseeable future time. Cashier's checks can be divided into commercial cashier's checks and bank cashier's checks. A commercial promissory note is a promissory note issued by an industrial and commercial enterprise or individual, also known as a general promissory note. Commercial promissory notes can be divided into sight and forward commercial promissory notes. Generally, commercial promissory notes do not have the conditions for rediscounting, especially the usance promissory notes issued by small and medium-sized enterprises or individuals. Since the credit guarantee is not high, it is difficult to circulate. Cashier's checks are all at sight. Most cashier's checks used in international trade settlement are bank cashier's checks. A check is a demand draft payable to a bank. Specifically, it is a bill issued by the drawer (bank depositor) to the bank (drawee) and requires the bank to pay immediately upon seeing the bill. When the drawer issues a check, there should be a deposit equal to the face amount in the paying bank. If the deposit is insufficient, the check may be dishonored by the holder, and the check is called a bad check. The drawer who writes a bad check is legally responsible. Checks can be divided into: Registered checks, in which the drawer indicates "payable to someone", "payable to someone or his nominee" in the payee column. When this kind of check is transferred for circulation, it must be endorsed by the holder, and the payee must sign on the back when withdrawing money. Bearer check, also known as a blank check, is marked "payable to the recipient" in the payable column. This kind of check can be transferred without endorsement, and there is no need to sign on the back when withdrawing money. Crossed check: Two parallel horizontal lines are drawn on the face of the check. The holder of this kind of check cannot withdraw cash and can only entrust the bank to collect the money into his account. Certified Check In order to prevent the drawer from issuing a bad check, the payee or holder can ask the paying bank to stamp the check with a "certified" stamp to ensure that it will be paid by the bank on time. The issuer or holder of a transfer check states "payment by transfer" on an ordinary check to impose restrictions on payment by the paying bank. International trade settlement methods: Letter of credit settlement method, remittance and collection settlement method, bank guarantee letter, combination of various settlement methods A. Letter of credit settlement method Letter of credit (letter of credit) is referred to as L/C ) method is the product of bank credit involvement in the settlement of international goods transaction prices. Its emergence not only solves the conflict of mutual distrust between buyers and sellers to a certain extent, but also enables both parties to obtain the convenience of bank financing in the process of using letters of credit to settle payments, thus promoting the development of international trade. Therefore, it is widely used in international trade and has become a major settlement method in today's international trade. A letter of credit is a conditional payment commitment made by a bank, that is, a written document issued by the bank to the beneficiary based on the request and instructions of the applicant for the issuance of a certain amount of money and promising to pay within a certain period of time against specified documents; or The bank is willing to purchase a letter of guarantee for the beneficiary's bill of exchange on behalf of the applicant under the conditions of stipulating the amount, date and documents. It belongs to bank credit and uses the reverse exchange method.

B. The combination of remittance and bank guarantee or letter of credit The combination of remittance and bank guarantee or letter of credit is often used to settle payments for complete sets of equipment, large machinery and large transportation vehicles (aircraft, ships, etc.). This type of product has a large transaction amount and a long production cycle, and often requires the buyer to pay part of the payment or deposit in advance by remittance, while most of the remaining payment is paid by the buyer in installments or in late payment according to the provisions of the letter of credit or a letter of guarantee. In addition, there are also forms such as the combination of remittance and collection, settlement of collection and standby letter of credit or bank guarantee. When we carry out foreign economic and trade business, we can decide which combination form we choose.