Terms of Paymen商務英語presentation

1、International PaymentGrancie DeContentsInstruments of payment Promissory noteTerms of paymentSame and difference of themDraftCheckIrrevocable L/CSight and usance L/CConfirmed L/C and unconfirmed L/CInstruments of paymentDraft A bill of exchange is issued by one person to another, requiring it to pay

2、 a certain amount of unconditional order to a specified person at a particular time. The payee and the drawer is usually the same person. A bill of exchange may also be a commercial bill or a bank draft. A commercial bill is a draft drawn by an industrial or commercial enterprise or individual, whic

3、h is widely used in international payment. A bank draft is issued by a bank to another bank and is usually used for inter-bank settlement.銀行匯票bank draft商業(yè)匯票commercial bill Time draft is the one that is payable in a specified number of days after sight, the date of issue or acceptance, or ata fixed f

4、uture time. For example: At days after sight 見票后若干天付款 At days after the date of issue 出票后若干天付款 At days after date of Bill of Lading 提單簽發(fā)后若干天付款 At days after acceptance 承兌后若干天付款 A promissory note is an unconditional written order by a person who promises to pay a certain amount to another person for

5、a specified period of time. Promissory notes may be issued by an individual, an industrial or commercial enterprise or a bank, but promissory notes issued by individuals or firms are not widely used in trade.Check issued by the drawer, payee requires banks to pay a certain amount of unconditional or

6、der.Terms of payment Remittance According to the different means of sending the trust deed for payment, remittance can be divided into (M/T),(T/T),(D/D). (M/T)-Mail Transfer 信匯 ( T/T)-Telegraphic Transfer 電匯 (D/D)-Demand Transfer 票匯 Mail transfer is by mail to the bank, has the advantages of low cha

7、rging. Telegraphic transfer is a telegraphic or telegraphic transfer. Demand refers to the importer from the Import Bank purchased a cheque, called bank draft, then the ticket to the exporter, exports export to the direction of a bank bill to get money. Different from the mail transfer and telegraph

8、ic transfer, demand can be transferred. The mail transfer is fast, and SWIFT members in its telecommunications network in order to lower the cost of transfers, and most international banks are members of the SWIFT, so the mail is more common to use。SWIFT（Society Worldwide Interbank Financial Telecom

9、munication）環(huán)球同業(yè)銀行金融電訊協(xié)會Letter of CreditIrrevocable L/C不可撤銷信用證Sight and usance L/C即期和遠期信用證Confirmed L/C and unconfirmed L/C保兌和不保兌信用證 Firm commitment by an issuing bank to pay an accepting bank a specified sum in a specified currency, provided the conditions included in the L/C document are met within

10、 a specified timeframe. This L/C cannot be canceled without the sellers prior written approval, and comes usually as a confirmed irrevocable letter of credit. Also called irrevocable credit. In a word, An irrevocable L / C means a credit which cannot be amended and cancelled without the permission o

11、f all parties and is widely used in international trade. According to UCP600, L / C must be irrevocable.Irrevocable L/CSight and usance L/C Sight letter of credit means that the beneficiary receives the payment immediately when the valid document is presented to the bank. Usance ju:zns L / C refers

12、to a letter of credit available to the exporter for the payment of the goods within a specified period after the effective presentation of the document. No matter what kind of letter of credit, usually contain the following contents: credit type, amount, expiration date, description of goods, shipme

13、nt, shipment arrival location, location, transportation and negotiation of required documents and so on.Confirmed L/C and unconfirmed L/C An unconfirmed letter of credit means payment by the issuing bank only, and the advising bank or other bank is not liable for payment. Confirming bank letter of c

14、redit means that not only the issuing bank but also the Bank of the exporting country will bear the responsibility of payment. That is to say, if the issuing bank is unable to pay, the confirming bank pays. Therefore, the seller has the double guarantee for obtaining the payment, and gets better pro

15、tection.Collection In case of D / A and D / P, payment is made by bank collection. Under the mode of collection, the bank only provides collection and remittance services, and does not accept the liability of the importer for dishonor. In case of the letter of credit, the issuing bank provides the c

16、redit guarantee for the transaction. The collection can be a documentary collection, that is relevant to the needs of the transport documents along with the draft together, can also be a clean collection that uses only the draftD/P-(Documents against payment)付款交單D/A-(Documents against Acceptance)承兌交

17、單D/P and D/AD/P and D/A If payment is made against D / P, the importer can only obtain the relevant documents after payment. If it is D / A, the importer will receive the bill of exchange after the acceptance of the draft issued by the exporter, and then pay the bill after a period of time. Usance documents are used for usance drafts. In view of the sellers interest, L / C is better than D / P, and D / P at sight is bette