Modes of Payment
Payment in international trade is much more complicated than that in domestic trade. In foreign trade: 1.remittance 2.collection 3.L/C 4.instalment payment Draft / Bill of Exchange
Useful expressions
一. PAYMENT BY PART L/C 1．×× 信用证付款，×× 信用证付款， ．××%信用证付款 ××%/余额即期付款交单 余额即期付款交单 payment of xx% by L/C and xx %/balance by D/P at sight 2．向某人交付装船单据 ． deliver shipping documents to sb. Release shipping documents to sb. Surrender shipping documents to sb. Hand shipping documents to sb.
NEGOTIATING OF PAYMENT
Expressions: 一. ASKING FOR MORE FAVOURABLE TERMS 1.优惠的/优待的/更宽的付款条件 more favorable / preferential/more liberal terms (payment terms) 2.有资格要求放宽付款条件 be entitled to easier (more favorable) terms
In consideration of the friendly relations between us , we are, as an exceptional case, prepared to accept payment for your trial order on a D/P basis. In other words, we will draw on you a documentary draft at sight through our bank on a collection basis. We hope that the above payment terms will be acceptable to you and look forward to hearing from you soon.

四. INSTALMENT PAYMENT 1. 分期付款的第一次付款 down payment
2. 余额分xx批支付 payment of the balance to be made in xx installments payment of the balance to be spread over in xx installments 3. 在每次分批装运时支付 to be paid against each / every partial shipment
Regarding the terms of payment, while we have every confidence in your integrity and ability, we wish to repeat that our usual terms of payment by confirmed and irrevocable letter of credit remain unchanged in all ordinary cases. For the time being, therefore, we regret our inability to accept D/A terms in all transactions with our buyers abroad.
Accept D/P payment for a trail order
Dear Sirs, “Ching Kiang" Brand Vacuum Flask(保温瓶) We have received your letter of January 25 and noted your kind intention of pushing the sales of our vacuum Flask in your country. Although we are appreciative of your trail order for 100 dozen Vacuum Flasks, we regret that we are unable to consider your request for payment under D/A terms, the reason being that we generally ask for payment by L/C.
Applicant, Opener Opening Bank, Issuing Bank Advising Bank, Notifying Bank Beneficiary Negotiating Bank Paying Bank Confirming Bank
3. types
Documentary /clean Irrevocable/revocable Confirmed/ unconfirmed Sight/ Usance (term ,time ) Transferable/nontransferable Revolving 循环 Back to back对开信用证 Anticipatory预付信用证 Acceptance 承兑信用证 Negotiation 议付
7.用银行汇票/汇款/信汇/其它偿付余额 的××% pay (settle) the remaining xx% (the balance) by bank draft / remittance / mail transfer / etc
二. DOCUMENTS AGAINST PAYMENT （D/P） ） 1．托收 ． on (for) collection on collection basis 2．经过银行托收贷款 ． collect proceeds through bank make collection of the proceeds through bank 3．付款交单 凭单付款 货到付款 凭单付款/货到付款 ．付款交单/凭单付款 documents against payment (D/P) cash against documents (CAD) /cash on delivery (COD)
3．拒付余额部分的金额 refuse payment of the remaining xx%( xx% balance) refuse to honor our draft drawn on you for the remaining xx%( xx% balance) 4．保留单据听卖方处理 keep documents at seller’s disposal 5．余额的××%在调整价格后/最后确定价格后偿付 5 % / pay (settle) the remaining xx% (the balance) after an adjustment in price / after final settlement of price 6．在货到目的港检验后 after inspection and survey on arrival of the goods at destination
4．见票……天后付款交单 ．见票 天后付款交单 D/P at …days’ sight 5.出票日期 提单日期 装船日期 出票日期/提单日期 装船日期……天 出票日期 提单日期/装船日期 天 后付款 D/P at… Days after date of presentation/after date of B/L/after date of shipment
For future shipments, however, we shall do our best to fulfill your order within the time stipulated. If , by any chance, it is impossible for us to do so, we will effect shipment on a D/P basis in order to avoid putting you to so much trouble in the extension of L/C. We trust you will appreciate our cooperation. Yours sincerely,
三. DOCUMENTS AGAINST ACCEPTANCE （D/A） ） 1．以见票 天期汇票付款， ．以见票…….天期汇票付款，承兑交单 天期汇票付款 pay by draft at …days’ sight ,D/A pay by draft at… d/s, D/A draw on you at. ..days’ sight, D/A draw on you at ...d/s, D/A 2. 做……天期承兑交单 天期承兑交单 on … d/s, D/A terms draw on us at …d/s ,D/A 3.汇票提交你方承兑 承兑我方汇票 汇票提交你方承兑/承兑我方汇票 汇票提交你方承兑 recommend our draft to your protection /accept our draft
As far as seller’s benefit concerned:
L/C is better than D/P D/P is better than D/A Collection is used when the financial standing of the importer is sound Where a previous course of business has given the exporter confidence