致用商务英语阅读（上）programmetenTermsofPayment.ppt

Terms of Payment,Programme Ten,Contents,Programme Content,Read a passage on payment terms; Read a passage on why 30-day payment terms; Learn the common expressions on payment terms; Learn Documentary Collections and Letters of Credit.,Programme Objective,Talk about concrete items on payment terms; Talk about Documentary Collections and Letters of Credit; Negotiate on payment terms clauses in the business activities; Communicate with foreign business partners on the matters of payment terms.,Part one,Warming-up,Challenge Yourself Can you tell us the Chinese meaning of the following words immediately?,1. instrument,2. security,3. effect,4. advantage,5. forward,6. intermediary,7. assume,8. facilitate,9. specify,10. transaction,Short Survey Have you got some idea of the following terms before reading the passage?,1. open account,2. documentary collections,3. letters of credit,4. cash in advance,5. prepay,Passage One Terms of Payment,There are four general terms of payment extended to a company purchasing goods from overseas. Ranked by preference of the importer from the least to the most risk, are Open Account, Documentary Collections, Documentary Letters of Credit, and Cash in Advance. Open Account Open account terms give the maximum security to the buyer and represent the greatest risk to the seller. This form of payment is used when the seller has enough trust in the buyers ability and willingness to pay once the goods have been shipped, provided the buyers country makes it possible for the buyer to effect payment as promised.,Advantages to Importer: Least risk for buyer Does not require bank credit Goods are in possession of buyer prior to payment Disadvantages to Importer: May increase price of goods quoted by seller,Documentary Collections Documentary collection terms are widely used in the purchase and sale of goods and services in international markets. Payment on a collection basis requires the seller to forward collection instructions, appropriate documents and the sellers draft through the banking system to the buyers bank. Banks act as intermediaries, protecting the interest of both parties. Both the buyer and seller assume risk in the transaction, since the buyer can refuse to pay for the documents, or the seller can ship unacceptable merchandise.,Advantages to Importer: Less expensive than letters of credit (in most cases) Less processing requirements than letters of credit With time collections, buyer may receive goods and resell before maturity date of draft Disadvantages to Importer: Goods shipped may not conform to goods as specified by buyer Seller/Banks control shipping documents,Documentary Letters of Credit (L/C) Letters of credit are the legal financial instruments most frequently used to guarantee payment for goods and services imported and exported. Because they mitigate the financial risks of doing business in unfamiliar economies, letters of credit also facilitate international sales. They are a very common form of international payment because they provide a high degree of protection for both buyer and seller. A letter of credit is issued by the buyers bank, advised through a bank in the sellers country (in most cases, the sellers bank), and then forwarded to the seller by the advising bank. The L/C specifies the terms and conditions that must be met before payment is rendered. The letter of credit process has been standardized by a set of rules,published by the International Chamber of Commerce. These rules are referred to as the Uniform Customs and Practice for Documentary Credit (UCP) and are currently listed in ICC Publication No. 600. Advantages to Importer: Reasonable assurance of delivery of goods may allow for: Lower purchase price Extended payment terms Disadvantages to Importer: Credit availability tied-up Banks check documents, not goods Added costs for buyer,Cash in Advance Under cash in advance terms, the importer prepays the seller prior to shipment of the goods. Cash in advance terms are typically used in new relationships where transactions are small and the buyer has little flexibility but to prepay. Since there is no guarantee that the goods will be shipped, the buyer needs to feel comfortable enough in the sellers ability and willingness to ship after payment has already been effected. The buyer should also consider the political and social stability of the sellers country, which may make it impossible for the seller to ship the goods as promised.,Words & Expressions,1) terms of payment 付款方式 2) extend v. 提供，给予 3) rank v. 排列，分等 4) preference n. 喜爱，偏爱 5) maximum adj. 最大的 6) represent v. 表现；代表 7) have trust in 对有信心 8) willingness n. 愿意 9) advantage n. 优势 10) effect v. 使产生 11) in possession of 拥有 12) prior to 在之前 13) documentary adj. 文件的 14) collection n. 托收 15) forward v. 转寄 16) intermediary adj. 中间的 17) assume v. 承担 18) process v. 对进行加工 19) maturity n. 成熟；到期 20) conform to 遵守 21) instrument n. 正式的文件 22) mitigate v. 使减轻 23) facilitate v. 促进 24) advising bank 通知行 25) tied-up adj. 被占用的 28) prepay v. 预付,Notes (1) Open Account是指“往来账户；未结平账户”；Documentary Collection是指“跟单托收”；Documentary Letters of Credit是指“跟单信用证”；Cash in Advance 是指“提前付款；预付货款”。 (2) This form of payment is used when the seller has enough trust in the buyers ability and willingness to pay once the goods have been shipped, provided the buyers country makes it possible for the buyer to effect payment as promised. 当卖方足够信任买方的支付能力并相信其在货物送达后愿意支付时，且买方按照承诺在买方国家是付款生效时，这种付款方式便会使用。,(3) Uniform Customs and Practice for Documentary Credit (UCP) 跟单信用证统一惯例 它是国际银行界、律师界、学术界自觉遵守的“法律”，是全世界公认的、到目前为止最为成功的一套非官方规定。70多年来，160多个国家和地区的ICC和不断扩充的ICC委员会持续为UCP的完善而努力工作着. (4) ICC Publication No. 600 国际商会第600号出版物 随着国际贸易和国际运输技术和运输方式的变化, 该惯例在使用过程中不断地暴露出一些问题。为了适应新形势的要求和贸易做法的不断变化，国际商会对该惯例不断地进行调整和改动，UCP500，即跟单信用证统一惯例国际商会第500号出版物，修订生成的时间为2006年。目的是为了制定一套能够约束信用证有关当事人并能为各方共同遵守的统一、明确的规则，同时也为从事国际结算的银行和国际贸易的相关人士提供处理实际业务和解决有关纠纷案例的重要依据。,(5) Cash in advance terms are typically used in new relationships where transactions are small and the buyer has little flexibility but to prepay. 提前付款支付方式典型地使用于首次交易。在这种交易关系中，交易数额小且买方几乎没有付款的灵活性，只能提前支付。 其中，短语have little but to的意思是“别无而只能.”，例如，短语have little chance but to run away的意思是“几乎没有机会只能逃跑”，短语have little possibility but to give in的意思是“几乎没有什么可能性只好投降”。,(6) Since there is no guarantee that the goods will be shipped, the buyer needs to feel comfortable enough in the sellers ability and willingness to ship after payment has already been effected. 由于无法保证货物装运，买方需要对卖方在付款生效后装运货物的能力和意愿有足够的信任。 其中，从句that the goods will be shipped是同位语从句，表示guarantee的内容。单词effect用作动词，是“使生效”的意思，例如，短语effect the law的意思是“法律生效”，短语effect the payment的意思是“付款生效”，又如，Their work has effected an improvement意思是“他们的工作得到了改进”。,Business Link:,Business link Brief introduction to International Chamber of Commerce,9/4/2019,International Chamber of Commerce (ICC) is the world business organization, are representative body that speaks with authority on behalf of enterprises from all sectors in every part of the world. The fundamental mission of ICC is to promote trade and investment across frontiers and help business corporations meet the challenges and opportunities of globalization. Its conviction is that trade is a powerful force for peace and prosperity dates from the organizations origins early in the last century.,9/4/2019,ICC has three main activities: rules-setting, dispute resolution and policy. Because its member companies and associations are themselves engaged in international business, ICC has unrivalled authority in making rules that govern the conduct of business across borders. Although these rules are voluntary, they are observed in countless thousands of transactions everyday and have become part of the fabric of international trade. ICC also provides essential services, foremost among them the ICC International Court of Arbitration, the worlds leading arbitral institution. Another service is the World Chambers Federation, ICCs worldwide network of chambers of commerce, fostering interaction and exchange of chamber best practice.,Read and Think,After Reading,9/4/2019,Task 1: After the passage, you will find 5 questions. For each question there are 4 choices marked A、B、C and D. You should make the correct choice.,1. Which of the following payment terms is ranked the most risk for the importer? A. Open Account B. Documentary Collections C. Documentary Letters of Credit D. Cash in Advance 2. Open account terms offer several advantages to the importer except_ . A. least risk for buyer B. goods are in possession of buyer prior to payment C. lower purchase price D. does not require bank credit 3. Banks act as_ , protecting the interest of both parties. A. intermediaries B. owner C. supervisor D. dealer,9/4/2019,4. Choose the synonym of the word “mitigate” in the sentence “Because they mitigate the financial risks of doing business in unfamiliar economies, letters of credit also facilitate international sales.” A. migrate B. lessen C. raise D. ease 5. Under cash in advance terms, the buyer should consider the sellers ability and willingness to ship after payment effected as well as _ . A. the banks credit of the sellers country B. the weather in the sellers country C. the political and social stability of the sellers country D. the customs of the sellers country,9/4/2019,Task 2: Fill in the blanks with the words and expressions given in the box. Change the form if necessary.,conform to security forward facilitate rank requirement on basis risk guarantee willingness,9/4/2019,1. Your sales will be _if you adopt letter of credit. 2. When it comes to international trade, both the parties should _ certain commercial rules. 3. Since you have little _ of this product, I will have a second thought. 4. ICC _ both the seller and the buyer to settle the disputes through negotiation. 5. It is _ to prepay when you are in a new relationship with your counterparty. 6. The _ of a country is necessary for a stable economy. 7. Please _ any letters to me while Im on business. 8. We are _ the risks of different payment terms so as to find the most suitable one. 9. He is not _ to have a small deal, for that means little profit. 10. We trade with other country _ of equality and mutual benefit.,Read and Translate,After Reading,9/4/2019,Task 1: Translate the following phrases into English.,1. 对信任 2. 使成为可能 3. 装运单据 4. 付款方式 5. 广泛应用 6. 为提供 7. 金融风险 8. 到期日 9. 付款生效 10. 在之前,9/4/2019,Task 2: Translate the following sentences into Chinese.,1. I need the maximum amount of information you can give me. 2. The great advantage of home-grown oranges is their great flavor. 3. He is in possession of a large house. 4. We all need to assume responsibility for the health of our body. 5. You have to allow for a certain amount of error.,After Reading,Read and Speak,9/4/2019,Task 1: Discuss the following questions with your partner after reading the passage.,Talk about the advantages and disadvantages of different payment terms. What should be the top priority when referring to payment terms?,9/4/2019,Task 2: Recite the following paragraph.,Documentary collection terms are widely used in the purchase and sale of goods and services in international markets. Payment on a collection basis requires the seller to forward collection instructions, appropriate documents and the sellers draft through the banking system to the buyers bank. Banks act as intermediaries, protecting the interest of both parties. Both the buyer and seller assume risk in the transaction, since the buyer can refuse to pay for the documents, or the seller can ship unacceptable merchandise.,Passage Two Why 30-Day Payment Terms? (excerpts),Q 1 Have you ever bought something? If you have, what kind of payment terms have you adopted?,Q 2 What should be paid attention to when we are going to pay the goods?,Why 30-day payment terms? The author makes it sound like having an invoice paid within 30 days is a really good thing to work towards, but its really not! I see freelancers put “30 days” on all their invoices and I never understand why its like some magical number that people just pluck out of the air because theyre used to hearing “30-day money back guarantee” and similar sales pitches and warranties on products.,As a freelancer (or a small business), 30-day payment terms are a nightmare, you constantly have to plan your cash flow a month in advance, and then if the payment is late youre looking at some seriously overdue money coming into your account. Dont even get me started on what it does to your tax returns! Its pretty much a 1-way slippery slope to losing track of your cash flow and going under.,Dont just slap “30 days” on all your invoices because thats what you see other companies do. Banks started handing out unsecured loans just because thats what other banks were doing, and look where that got everyone. Yes thats a generalization and is slightly dramatic, but the principle is there. Just like my view on IE6 browser support, you need to do whats right for you, not whats right for “everyone”. My payment terms have always been 7 calendar days, and not only have I never had any client (including multibillion dollar corporates) complain,about it, but Ive also only ever had one late payment and I still got paid in 10 days rather than 30 no biggie! Thats just for the initial deposit by the wayfor the final payment, the work doesnt go live until the client has paid the final invoice. My latest scheme is to set fixed payment dates from the get-go to circumvent clients stalling with a lot of revisions. Its not cool when you agree to 50% up front and 50% when its done in a weeks time, then the client takes a month to give you access details to the server so any client delays now affect the live-date, but not the final payment date.,Ill say something like “The site will take us 4 weeks of actual work to complete, so well be charging 50% up front, and 50% in 4 weeks time. The time it takes to actually launch the site and set it live will depend on how many changes you request and how quickly youre able to sign-off the completed work, but the payment timeline is fixed.”,9/4/2019,Why is this good? Because instead of saying “in 4 weeks time Ill send you an invoice, which is due in a further 30 daysIm saying “in 4 weeks time the final payment is due”. So far so goodI havent had any clients complain at all, and Ive had no payment problems at all.,Words & Expressions,1) invoice n. 发票 2) freelancer n. 自由撰稿人 3) magical adj. 像魔法的 4) pluck v. 拔除，摘除 5) pitch n. 音高，音调 6) warranty n. 保证书 7) nightmare n. 噩梦，梦魇 8) cash flow 现金流 9) in advance 预先，事先 10) overdue adj. 过期的 11) tax returns 纳税申报单 12) slippery adj. 下滑的 13) lose track of 失去 14) hand out 分配，施舍 15) unsecured adj. 无担保的 16) generalization n. 归纳，概括 17) initial deposit 初始保证金 18) final payment 尾款 19) from the get-go 从一开始 20) circumvent v. 规避 21) stall v. 拖延，搁置 22) up-front adj. 在前面的； 预付的 23) launch v. 启动，发射 24) timeline n. 时间轴，时间表 25) fixed adj. 固定的 26) due adj. 须立即支付,Notes (1) I see freelancers put “30 days” on all their invoices and I never understand why its like some magical number that people just pluck out of the air because theyre used to hearing “30-day money back guarantee” and similar sales pitches and warranties on products. 我看见自由撰稿人在所有发票上注明30天付款，而且我从来都不明白他们为什么这样做。30天，就像某种人们魔术般从空气中拿来的数字，这是因为他们习惯于听到“30天退款保证”以及类似的推销辞和商品保证书。 其中，名词invoice的意思是“发票”。发票是正常的商业交往中付款的凭证，通常在付款后卖方才出具发票。短语sales pitches 的意思是“推销商品的言辞”。名词warranty 的意思是“保证书”，短语warranties on products的意思是“商品保证书”。,9/4/2019,(2) Its pretty much a 1-way slippery slope to losing track of your cash flow and going under. 这简直就是失去你的资金流并变得更糟的1字形的滑坡。 其中，短语lose track of 的意思是“失去，忘记”，例如，短语lose track of letters的意思是“信件不知所踪”，短语lose track of money的意思是“钱没了”。又如，We took a walk along the river and totally lost track of time.（我们沿着河岸散步, 完全忘了时间。）,(3) Thats just for the initial deposit by the way-for the final payment, the work doesnt go live until the client has paid the final invoice. 顺便解释一下，那仅仅是初始保证金。对于最终尾款，除非客户已经支付终结发票，此作品才能真正完稿。 其中，短语initial deposit 的意思是“初始保证金；开户存款”，例如，Is there any requirement for initial deposit of agreement savings?（贵行对初次协定存款有什么要求吗？）短语final payment的意思是“尾款，终结款；结算”，例如，Progress payments are made during manufacture and final payment on delivery.（按进度付款是在制造过程中和最后付款交货。）,(4) The time it takes to actually launch the site and set it live will depend on how many changes you request and how quickly youre able to sign-off the completed work, but the payment timeline is fixed. 实际开始写作并使作品完稿所需时间将取决于你要求的变更有多少以及你能够多快签收已完成的作品，但是付款期限是固定不变的。 其中，句子it takes to actually launch the site and set it live是定语从句，修饰前面的先行词time。句子how many changes you request and how quickly youre able to sign-off the completed work作will depend on的宾语，而且，you request是名词changes的定语。,Business Link:,Business link Commonly Used Invoice Payment Terms and Their Meanings,9/4/2019,Net monthly account Payment due on last day of the month following the one in which the invoice is dated PIA Payment in Advance Net 7 Payment seven days after invoice date Net 10 Payment ten days after invoice date Net 30 Payment 30 days after invoice date Net 60 Payment 60 days after invoice date Net 90 Payment 90 days after invoice date EOM End of Month 21 MFI 21st of the month following invoice date 1% 10 Net 30 1% discount if payment received within ten days otherwise payment 30 days after invoice date,9/4/2019,COD Cash on Delivery Cash Account Account conducted on a cash basis, no credit Letter of Credit A documentary credit confirmed by a bank, often used for export Bill of Exchange A promise to pay at a later date, usually supported by a bank CND Cash next Deli