A commercial transaction is an agreement between two or more parties for the supply of goods, works or services in accordance with the conditions that have been agreed between the parties in advance.
An international transaction is an agreement between representatives of different countries (firms that are not registered in the country of the seller or buyer).
The transaction is considered internal if representatives of one country take part in it, including foreign firms that are registered in the country of the buyer or seller.
Commercial transactions are divided into main and auxiliary.
The first include those transactions involving the purchase and sale of goods, scientific and technical information (patents, licenses, etc.) and technical services (the introduction of new technologies, assistance in the construction of unique objects, etc.), rental of industrial facilities, goods, works and services and the organization of international tourism.
Subsidiary transactions consider agreements related to the transfer of goods, works and services from sellers to buyers, including international transportation, insurance, warehousing, processing and storage of goods, as well as with settlements between the parties (banking operations).
Barter, or compensatory, are transactions carried out without cash in cash or non-cash form, but rather on the basis of direct exchange of goods. Barter transactions are characteristic of an underdeveloped market. In industrialized market economies, barter transactions are subsidiary, secondary. In Russia, barter plays a significant role in connection with disruptions in the system of finance and supply, including inflationary processes.
Commercial transactions in international practice are concluded directly with the manufacturer or through an intermediary.
Direct trade transactions between consumers and producers of goods, works, services provide significant advantages, namely:
- the buyer receives exactly the product he needs;
- communications between sellers and buyers are established at the stage of research and development or design work, which makes it possible to make adjustments to the terms of the transaction on time;
- the buyer expands his business contacts by contacting firms that are involved in the project or are suppliers of the main seller, which often takes place when executing complex orders (creating unique machines and mechanisms, building multi-profile facilities, etc.);
- direct ties often develop into long-term cooperation or co-production;
- direct communications facilitate the operation of equipment, the organization of warranty and post-warranty service.
However, with such business management, the buyer assumes the transportation, storage, insurance of goods, the implementation of customs formalities, bank calculations and other operations. Therefore, buyers often prefer to use the services of a qualified and experienced intermediary.
Resellers, making a profit from the purchase price and sales or at the expense of the commission paid by the seller or the buyer, relieve the seller from the need to create a distribution network that requires large investments in advertising, transport, warehouses, etc.
Intermediaries provide manufacturers and customers with a variety of services – from finding a partner and concluding a contract to post-warranty service, including delivery, installation, commissioning, testing, and commissioning of equipment.
When conducting a commercial transaction, it is initially necessary to find a counterparty, then prepare to sign the contract of sale, after – conclude a contract and lastly discuss the implementation of the contract.
For example, a domestic enterprise decided to purchase equipment abroad.
And for this it is necessary to establish suppliers, then decide the order of payment (for cash, at the expense of a loan, in exchange for a part of the product, at the expense of the sale of another export product).
Then prepare a feasibility study, which indicates all the necessary parameters of the equipment (performance, nomenclature of the finished product, engineering support, etc.), as well as negotiate the payment procedure, delivery terms, deadlines, etc.