Remittance

Remittance refers to the act of sending money as payment for goods or services or as a transfer of funds to another party, often across geographical boundaries. In a broader sense, remittances are amounts of money transferred by individuals, often migrants, to family members back in their home country. However, within the context of business transactions, remittance specifically involves the payment from a buyer to a seller or a service provider as compensation for goods or services rendered.

Key aspects of remittance in a business context include:

Effective remittance processes are crucial for maintaining healthy cash flows in businesses. They ensure that sellers or service providers receive timely payments for their offerings, thereby sustaining operations and facilitating financial planning. In international trade, remittances also involve considerations of currency exchange rates and transaction fees, which can affect the total amount received by the seller or service provider.