商务英语课件：Chapter 11 Payments

1、Chapter 11 PaymentsPayment in foreign trade more complicated and difficult because a great distance separates the exporter and his customer,and in many cases, several parties will have to be involved in order to get the payment made. To recover the value of the goods supplied or services rendered, t

2、he exporter should have a good investigation into the credit standing of the importer and work out the most appropriate credit policy. Four methods of obtaining payment for Export shipment (1) remittance ( including Payment in advance and cash with order), (2) open account, (3) documentary credit(us

3、ing letter of credit) and (4) documentary collection (D/P or D/A).Letter of credit (L/C) The most commonly used means of payment in international tradeD/P and D/A are less safe than L/CTo the exporter. They are often used when the amount of the deal is relatively small.How to write a letter of payme

4、ntFor a seller, he or she should write in this way:1. Mentioning the contract, goods, etc.Useful expressions:We refer you to Contract NoRegarding our contract 2. Suggesting the term of payment and the reasonUseful expressions:Aswe shall be glad if youAs you know,we suggestOwing to.we would appreciat

5、e it if you3. Wishing the reader to acceptUseful expressions:We wish you can accommodate us in this respect.For a buyer, he or she should reply in this way:1. Stating that you have received their letterUseful expressions:Thank you for your letter of2. Giving your reply of agreeing or refusing and yo

6、ur reasons.Useful expressions:We want to make it clear thatWith regard to we regret being unable to accept 3. Stating your good will your wish to do business with the readerUseful expressions:Considering our friendly relationship that we extend you this accommodation.We sincerely hope that we can do

7、 business to our mutual benefit.How to write a letter of L/C amendment1. Thanking /informing the buyer for /of their opening of the L/C and pointing out the mistakes in the L/C.Useful expressions:Thank you for your L/COn perusal, we found thatWith regard to your L/C2. Explaining the reason for the n

8、eed of amendment.Useful expressions:As there is no direct steamer toWe are sorry that owing to some delay,3 Specific suggestions for amendmentUseful expressions:We shall be glad if you can amend the L/CPlease amend the L/C to readPlease extend by fax4. Wishing the reader to send the amendment withou

9、t delayUseful expressions:We look forward to receiving your amendment by the end of this week.Payment Useful Word & Expressions1. L/C, LC= letter of credit (Ls/C) n.An L/C is a tool or instrument of payment, and the payment is guaranteed by a bank.We appreciate your difficulty in opening Ls/C.Useful

10、 Word & ExpressionsAs exporters, we must pay special attention to every stipulation contained in the L/C and see if these provisions are acceptable to us.Amend the L/C1. We shall be grateful if you will instruct your bankers to amend the L/C to read “commission 3%”.Amend the L/C2. You should amend t

11、he amount of the L/C as CAN$125,0003. We have amended the L/C as allowing transshipment and partial shipment.Cont. days L/CWe are unable to persuade the sellers to agree to 30 days L/C.Establish/open/issue an L/C (Ls/C)If orders are booked for prompt shipment, it is necessary to establish Ls/C by te

12、lex.They have opened an L/C through the Bank of China, London. Expedite the L/Cextend the L/CWe would ask you to do your best to extend the L/C for 30 days.Please extend the above L/C to July 31st and August 15th for shipment and negotiation respectively.L/C at sight For the finished products ,an L/

13、C at sight is required.L/C for(amount of money,order,contract, quantity) Cont.They have received your L/C No. A105 for the amount of US$10,000.We wish to state that the relative L/C for this order will be opened by us sometime in September.Cont.We regret to learn that the L/C for Contract No. HS3418

14、 issued by our bank has not reached you up to now.As requested, we are opening with our bank two separate Ls/C ,each for 25,000 metric tons.Rush the L/CL/C available by sight draft=L/C payable against sight draft Sight L/C=L/C at sightTerm/time/usance L/CIn favor of sb=in sbs favorWe will request ou

15、r bankers to open a L/C in your favor upon receipt of your confirmation of this order.The balance standing in our favor is US$ 10,000.Sample1 Dear Sirs,We open an irrevocable L/C No.456 in favor of ABC Company, New York for account of China National Import & Export Corporation, Beijing to the extent

16、 of US$ 78,000.This credit is available by beneficiarys drafts at sight drawn on us in duplicate for 100% of the invoice value and Accompanied by the following shipping Documents:Full set of clean “on board” “freight paid” Ocean Bill of LadingInvoice in quintuplicate copies, indicating Contract No.P

17、acking List in duplicate.Please advise the credit to the beneficiary.Cont.We thank you for your assistance in the matter.Sincerely,Jack XuSample 2 URGING L/CDear Sirs,Re: Order No.1234With reference to your Order No.1234 for 2000M/T stainless steel, we have not received the related L/C so far in spi

18、te of our repeated requests by faxes.Your Purchase Order stipulates shipment to be made during October and L/C reach here by the end of September. Today it is already October 17, yet we dont appear Cont.To have received your L/C. In order to book the shipping space at an earlier date, you are reques

19、ted once again to have the L/C establishment immediately by fax.If your L/C fails to reach here by the end of this month, well have to cancel your order.We await your immediate attention to this matter. Cont.Sincerely,Jack XuWriting Task11-4 Write a letter in English asking for amendments to the following letter of credit by checking it with the given contract terms.Dear Sirs,L/C No. F-07567Thank you for your L/C again