Clearing 

Clearing is a system of non-cash payments for goods or services between parties that have mutual agreements or obligations.

Clearing can take place between companies or countries, and its main purpose is to reduce the number of payments for services or goods provided under a previously concluded agreement, or to reduce the cost of banking operations.

1. High speed of work. Without real deliveries of goods or money, the speed of settlements increases significantly.
2. Availability of insurance and guarantee funds helps reduce clearing risks.
3. Simplification of interaction with representatives of the parties to the transaction (counterparties), regardless of their location.
4. Very low maintenance.
5. No influence on the calculation of price fluctuations.

Despite its advantages, clearing also has the disadvantage of compulsory audits. As a rule, this is necessary if one of the counterparties made a mistake in the calculations. To avoid this, clearing organizations are used.

Clearing organization - any legal entity licensed to carry out clearing and acting as an intermediary between the two parties to the contract.