unit_7terms_of_payment.pptVIP

Unit 7 Payment and L/C支付与信用证 Contents Part One Part One As far as the seller’s benefit is concerned, Letter of Credit is better than D/P. D/P at sight is better than D/P after sight, whereas D/P is better than D/A. In international trade, payment through collection is accepted only when the financial standing of the importer is sound or where a previous course of business has inspired the exporter with confidence that the importer will be good for payment. Three basic methods of effecting payments in international business: Remittance is a process that the payer instructs his bank or institutions to have a payment made to the payee. Parties involved: --the remitter, --the payee, --the remitting bank --the paying bank remittance services is often used for payment of advance payment, cash with order, open account, payment in installment and commission, etc.. Points for attention in using these methods: when we use the remittance in international trade, we should pay attention to the following factors as the remittance stands commercial credit only. ---make clear the financial standing; ---the amount of remittance should not be so great; ---if the goods enjoy the market, we seldom use remittance. when funds are not required immediately, or where bills are not sufficiently attractive to a banker for negotiation, they may be handled by an exporter to his bank for collection. The exporter ask his bank to arrange for the acceptance or payment of the bill overseas, and the bank will carry out his task through its own branch office or a corresponding bank. Clean Collection: it means the parties to a collection financial documents（金融票据）are not accompanied by commercial documents（商业票据）. Documentary Collection: it is a means of ensuring that the goods are only handed over to the buyer by a bank when the amount shown on a bill of exchange（汇票） is paid or when the customer accepts the bill as a contract to pay by a specified date. D/P（付款交单）: under D/P, the exporter is to