国际商务函电：Chapter 9.pptVIP

 I. Remittance A. Mail Transfer (M/T) B. Telegraphic Transfer( T/T) C. Demand Draft (D/D) II. Collection A. Clean Bill for Collection B. Documentary Bill for Collection 1. Document against Payment (D/P) (1) D/P at sight (2) D/P after sight D/P T/R 2. Document against Acceptance III. Letter of Credit (L/C)? Chapter 8 Main Modes of Payment besides L/C One of the most convenient and common terms of payment in international trade. Three types of remittance: Telegraphic Transfer (T/T), Demand Draft (D/D), and Mail Transfer (M/T), of which T/T is the mainstay means. Widely used for payment in advance, cash on delivery, cash with order, open account trade, down payment, and payment for samples. Documentary collections, comprising commercial documents. Under D/P, documents will not be released to the importer until payment is effected. Under D/A, documents are handed over to the importer upon his acceptance of the bill of exchange drawn by the exporter. Payment will not be made until a later date. Advantages of Documentary Collection The major advantage of a cash against documents payment method for the Buyer is the low cost, versus opening a Letter of Credit. The advantage for the Seller is that he can receive full payment prior to releasing control of the documents, although this is offset by the risk that the Buyer will, for some reason, reject the documents (or they will not be in order). Since the cargo would already be loaded (to generate the documents), the Seller has little recourse against the Buyer in case of non-payment. A payment against documents arrangement involves a high level of trust between the Seller and the Buyer and should be adopted only by parties well known to each other. Risks in Documentary Collections ◆ If it is a sight draft, the risk of non-payment but will not eliminate it totally since the importer