《Chapter10OtherTermsofPayment》-精选课件(公开).pptVIP

(4) In compliance with your request, we will accept D/A 30 days as an exceptional case. (5) We will appreciate it if you can make a concession in payment terms, say D/P at sight. (6) We will send our draft at 60 days for acceptance by separate mails. Dear Sirs, We are the largest supermarket in India and have recently received a number of enquiries of your bicycles. We think there are good prospects for the sale of this product, but at present it is little known here and as we cant count on regular sales we dont feel able to make purchases at our own expenses. We are therefore writing to suggest that you send us a trial delivery for sale on D/A terms. We make the proposal hoping to place orders when the market is established. We believe our proposal offers good business chances and hope you will be willing to accept. Yours sincerely, (Signature) Advantage and disadvantage of collection The most unsatisfactory feature of the D/P form of transaction is the possibility of the buyer refusing to honor the draft and take up the shipping documents, especially at a time when the market is falling. In such a case, the seller may not receive his payment, although he is still the owner of the goods. Under D/P method, before making payment, the buyer can not get documents of title to the goods and take delivery of the goods. The ownership of the goods still remains in the hands of the seller. If the buyer dishonors the draft, the seller can sell goods to others. In the case of payment by D/A, the further difficulty arises that, on the buyer accepting the draft, the documents of title will be surrendered to him. Hence, if the buyer goes bankrupt or becomes insolvent before the payment of the draft, the loss will fall on the seller. Therefore, seldom does a seller accept payment by D/P or D/A, unless the buyer is of unquestionable integrity or if there is a special relation between the seller and the buyer. It is far better for the exporter to use L