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1、 various payment methods and their advantages and disadvantages; how to write a letter requesting favorable payment terms; common circumstances of using T/T, D/P and D/A; how to use the common expressions for negotiating payment methods.III. Letter of Credit (L/C) Chapter 8CollectionRemittanceSample

2、 Letters include the following subjects: Dear Sirs, Thank you for your letter of September 20 and we are pleased to reply to you regarding our usual terms of payment. For your information, we adhere to the traditional payment of confirmed & irrevocable L/C for the full amount of the invoice valu

3、e to be established in our favor, available by draft at sight, reaching us 30 days before the month of shipment, remaining valid for negotiation in China for another 21 days after the prescribed time of shipment and allowing transshipment and partial shipments. Sometimes we can also accept time L/C

4、available by draft at some days. For customers with long-standing business relations with us and outstanding credit record, we may be able to extend a more favorable term of payment such as D/P and D/A, in order to facilitate their financing and promote business to mutual benefit. However, we consid

5、er it advisable to make it clear that D/P or D/A is only accepted if the amount involved for each transaction, with other terms agreeable to us, is below USD 10 000. If the amount exceeds that figure, payment by L/C is required. The above mentioned are our usual terms of payment and also the payment

6、 methods commonly used in our foreign trade practice in China. Please do not hesitate to let us know if you require further information concerning payment. We look forward to the pleasure of receiving your initial order. Yours faithfully, Letter 9-1 Dear Sirs, Thank you for placing an order with us

7、for 2 000 sets of 12V Power Tools. Our sales contract is attached to this email. The products contain customized design according to your specifications. For this reason, in the sales contract we require a down payment. The detailed clause of the payment terms in the S/C reads: The down payment up t

8、o 30% of the total contract amount shall be remitted to the seller no later than Feb. 25. The balance shall be paid to the seller by T/T within 7 working days after receipt of the copy of shipping documents. Please sign the S/C and send it back to us for our record. We expect your early confirmation

9、. Yours faithfully,Letter 9-2 Dear Sirs, Re: Order for Dehydrated Mushroom We would like to place a trial order of 20 metric tons of the captioned goods (2009 Crop), at the price quoted in your offer of August 14, 2009. As this particular order involves a relative small amount, we would suggest that

10、 you accommodate us by accepting payment by D/A at 45 days after sight instead of L/C as required in your offer. This is just an initial order. If the trial sale proves successful, you may count on us for further orders. We hope our request will meet your agreement and look forward to your favorable

11、 reply. Yours faithfully, Letter 9-3Dear Sirs, We thank you for your letter of 20 this month, in which you suggest our accepting payment by D/A at 60 days after sight as you think it does not pay to open an L/C for a small order. After taking your suggestion into due consideration, we think the best

12、 we can do at present is to agree to payment by D/P at 45 days after sight as an exceptional case. Please understand that we can only make this concession under this circumstance, but this should not be taken as a precedent. Our products always find a good market in many countries in the world. We a

13、re confident that this particular product you have ordered will have a wonderful sale in your market. We hope the above payment terms are acceptable to you and look forward to your confirmation. Yours faithfully,Letter 9-4 Dear Sirs, In the past, our purchases of power tools from your company have n

14、ormally been paid by confirmed and irrevocable L/C. This arrangement has cost us a great deal of money. From the moment we open the credit till the time our buyers pay us, our capital has been tied up for several months, leaving us limited space for further development. At present, this is a particu

15、larly serious problem for us in view of the current international financial crisis and the economic downturns in our country. If you could offer us easy payment terms, it would probably lead to an increase in business between our two companies. Therefore we would like to propose either cash against

16、documents on arrival of goods or D/A terms Your kindness in giving priority to the consideration of the above request and giving us an early favorable reply will be highly appreciated. Yours faithfully, Letter 9-5 Dear Sirs, We are in receipt of your letter of August 10, requesting for a change in p

17、ayment terms. Having considered your proposal carefully we very much regret that we are unable to entertain your request. As our usual practice goes, at present, we cannot accept the payment terms you proposed and make you an exception. Actually, there is nothing unusual in our original arrangement.

18、 Counting from the time you issue an L/C till the time shipment reaches you, the interval is only about three months at most, which is quite normal. Furthermore, you must also be aware that when we have the goods ready for shipment, we also have to pay our money to our manufacturers and shipping age

19、nts. Since considerable business has been done with other buyers at our prevailing prices and on L/C terms, we sincerely hope you will not think us unaccommodating and reconsider our payment terms. We look forward to your early reply. Yours faithfully,Letter 9-6Practice makes perfect1 Fill in the bl

20、anks with the words and phrases given in the box. Change the forms where necessary. minimize In consideration of precedent with discretion negotiate be adhered to prescribes count on Attached expect due consideration as an exceptional case be tied up priority prevailing accommodate find a good marke

21、t regret at most at intervals of 2. Choose the best answer to complete the following sentences.CDCBB2. Choose the best answer to complete the following sentences.ABCBCDBDCC3 Supply the missing words in the blanks of the following letter. requesting / payment terms /regard(reference) / covering / be / best / in / balance /sight / urgent (bad, great, dire) / if /confirmation (acceptance) / delay / delivery (shipment)

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