the letter of credit as a method of smoothing international payment is a conditional security and obligation to pay the customer bank (issuing bank) to seller (applicant). for this purpose, the letters of credit may be considered as the most usual method of payment of goods price in international trade. the classic form of letters of credit is the commercial letters of credit whose financial ob...

We develop an inventory model to determine optimal ordering policy under permissible delay in payment by considering demand rate to be stock dependent. Mathematical models are derived under two different cases: credit period being greater than or equal to cycle time for settling the account, and credit period being less than or equal to cycle time for settling the account. The results are illus...

In this paper, we have considered an economic order quantity model for deteriorating items with two-level trade credit policy in which a delay in payment is offered by a supplier to a retailer and also an another delay in payment is offered by the retailer to his/her all customers. Here, it is proposed that the demand function is dependent on the length of the customer's credit period and also ...

The classical economic order quantity model of Wilson’s was developed with the assumption that the buyer must pay off immediately on arrival of the goods in the inventory system. In fact, offering buyers to delays payment for goods received is considered as a sales promotional tool in the business world. With offer of trade credit, vendor increases sales, attracts more buyers and reduces on – h...

BACKGROUND The demand for cosmetic surgery and services has diminished with recent fluctuations in the economy. To stay ahead, surgeons must appreciate and attend to the fiscal challenges of private practice. A key component of practice economics is knowledge of the common methods of payment. OBJECTIVE To review methods of payment in a five-surgeon group practice in central Texas, USA. METH...

The retailer (buyer) is usually allowed a permissible credit period to pay back the dues without paying any interest to the wholesaler (supplier). In this problem the retailer can pay the wholesaler either at the end of credit period or later incurring interest charges on the unpaid balance for the overdue period. This research develops a retailer's model for optimal cycle and payment times for...

Letter of Credit is an international payment instrument whereby the issuing bank undertakes to pay the beneficiary, against presentation of certain stipulated documents, according to the conditions of the Letter of Credit. Discounting of LC for the short-term financing of the seller, due to the independent and irrevocable undertaking of the bank to make payment, is prevalent. Beneficiary gets t...

Trade credit is a well established promotional tool in the present competitive world and its impact on demand cannot be ignored. Businesses often use trade credit to increase their market share and, in turn, the profit. Undoubtedly, trade credit plays a great role in increasing the demand but it also involves a great risk of nonpayment. In order to reduce the risk of non-payment, businessman at...

This paper introduces a new credit card payment scheme called No Number Credit Card that can significantly reduce the possibility of credit card fraud. The proposed payment system is loosely based on Kerberos, a cryptographic framework that has stood the test of time. In No Number Credit Card, instead of card numbers, only payment tokens are exchanged between the customers and merchants. The to...

A credit network models trust between agents in a distributed environment and enables payments between arbitrary pairs of agents. With their flexible design and robustness against intrusion, credit networks form the basis of several Sybil-tolerant social networks, spam-resistant communication protocols, and payment systems. Existing systems, however, expose agents’ trust links as well as the ex...