国际贸易专业英语第二版课件檀文茹主编 ISBN9787811343076lesson 11.pptVIP

Unit Eleven Payment Pre-reading Questions How many different types of payment methods are used in international trade? What are they? What are the most commonly used approaches to securing payment from overseas buyers? What are the required procedures under each payment? What on earth does the final example talk about? Payment options prepayment documentary credits documentary collections open account trading Prepayment Prepayment, or payment in advance, is the most favourable payment method from the sellers point of view and least favourable to the buyer. Open account Trading on open account terms is practically the opposite of prepayment terms in that the importer takes title to the goods shipped by the exporter before any payment is made for them. Bills of exchange It is an unconditional order in writing addressed by the person giving it (the drawer) to another person (the drawee) and signed by the drawer. It requires the drawee to pay on demand (or at a fixed and determinable future time) a specific sum of money to, or to the order of, a named person or the bearer (the payee). Missing documentation Protesting a bill of exchange Documentary letters of credit It refers to a credit payable against presentation of documents. revocable L/ C It is the letter of credit, which can be recalled at anytime by the issuing bank with no need to ask for beneficiarys consent. But, in case of advising bank has negotiated the letter of credit before receiving the notice, the issuing bank shall still be responsible for repayment. irrevocable L/C It means that once the letter of credit is issued, in the validity period, the issuing bank cannot modify or recall the letter of credit without consents by all concerned parties. Key terms documentary collection A draft to which documents are attached, accompanied by a collection letter. Usually, these documents include a commercial invoice and shipping documents. sight draft a draft payable upon presentation acceptance credit a doc