1. When asking the other party about its payment terms we may hear such expressions as:
· What about your payment terms?
· What terms of payment do you wish accept ?
2. How to reply the above question?
· Payment by L/C is our usual practice of doing business.
· We only accept payment by irrevocable letter of credit payable against shipping documents.
· Only L/C is acceptable to us.
3. When showing the reluctance to accept your customer’s payment we may hear such expressions as:
· We accept such terms only once.
· This is the first and also the last time we grant you such terms.
· In view of our long-term cooperation, we agree to your payment terms.
4. When disagreeing your customer’s payment we may hear such expressions as:
· I don’t think it is proper time for us to accept payment by D/P.
· We would consider accepting terms of D/P if your order were of small size.
· It’s our policy to make the shipment after receipt of payment.
· We can hardly make any exception as L/C at sight is our usual practice.
5. When urging the buyer to open L/C:
· The earlier you have the credit opened, the sooner you will get goods.
· The earlier the L/C is opened, the sooner the goods are delivered.
· We shall have the right to terminate the contract,if you fail to open the credit in time.
6. When persuading the buyer to adopt L/C we may hear the expressions as:
· As you understand, an irrevocable L/C is a reliable and safe method of payment.
7. When the buyer persuade the seller to give up L/C payment:
· A letter of credit would add to the cost of my imports.
· A letter of credit would cause us a lot of inconvenience
Dialogue : Payment Terms
Scene: Mr. Wang, the seller and Mr. John, the buyer are talking about their first deal. All of the terms have been settled except for the terms of payment. Obviously, it’s not wise to insist on each other’s payment, so they now sit down to discuss this matter, hoping the first transaction can been soon conclude.
Mr Smith: Do you accept the payment by D/P?
Mr Wang: Sorry, it can’t be done. We usually accept payment by confirmed, irrevocable letter of credit available against presentation of shipping documents.
Mr Smith: There’s a lot to be done for opening L/C. We have to pay a deposit for bank and that will tie up my funds and add to the cost
Mr Wang: I’m sorry I couldn’t help, Mr.Smith. As for import, we always require L/C and the other way round, we pay by L/C for our imports.
Mr Smith: It would help me grately if you can accept D/A or D/P. As you know, L/C will not only increase additional expense but also cause red tape. To you it makings no great different, but to me, it does.
Mr Wang: It does too. L/C gives us the additional protection of the banker’s guarantee.
Mr Smith: I think it’s not sensible to insist on each other’s condition. Let’s make some concession. What do you say to 50% by L/C and balance by D/P?
Mr Wang: I’m sorry, Mr. Smith. I’m afraid we do require payment by L/C.
Mr Smith: Well…Mr. Wang. We agree to accept L/C if you can make the shipment one month ahead.
Mr Wang: Ok. We will book the space first and effect the shipment within two or three weeks after receipt of your L/C. Is that ok for you?
Mr Smith: Perfect!
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