D-2-2- The corporate check for your export payment and its advantages and drawbacks.

2-2-1- The check

The check is a paper-based payment tool. This tool allows the account holder, the drawer, to make a payment via the bank, the drawee, to the exporter. The amount of the invoice is indicated on the check.

Checks are processed using a computer. In effect, they are dematerialized upon receipt by the bank. This is not the case for all countries, which consequently creates problems with receivables management.

All countries are not subject to homogeneous laws, thus this payment tool offers the exporter minimal protection. Some international instruments, such as the Geneva Convention of 1931, require a legal framework for this type of payment. One of its foundations is to apply the law of the land where the check is to be paid, in cases of dispute.

Since there is a corporate check (business check), there is also a bank check. These two types of checks are generally accepted in most countries.

2-2-2- The corporate check: definition

The corporate check, whose drawer is the bank account holder, can be endorsed or certified. This type of endorsement provides the exporter the certainty that the account is provisioned.

2-2-3- The corporate check : collection modes

There are two types of collection: "under reserve" and credit after collection.
  • Collection "under reserve": the exporter is credited when the check is presented.
  • Credit after collection: the exporter is credited only after payment collection from the exporter's bank.

2-2-4- The corporate check: advantages

  • The comporate check is easy to use.,
  • there is recourse in the event of default.,
  • it is widely used,
  • it is inexpensive.

2-2-5- The corporate check: drawbacks

  • One of its drawbacks is that the payment period is quite extensive,
  • the time that is needed for the collection,
  • the amount must not exceed a fixed amount (depending on each bank) ,
  • la demande de virement est effectuée par l'importateur,
  • Laws vary from one country to another.