unit 7(1)Terms of payment1.ppt

Unit 7 Terms of Payment
第七课支付条款
主讲人:孙小孟
Introduction:
Terms of payment are different from Incoterms.
Incoterms deal with the questions concerning the delivery of the products from the seller to the buyer. Terms of payment define the conditions under which the seller and buyer agree to settle the financial amount of the sales contract. The
basic points are:
1. method of payment;
2. amount;
3. place and date of payment;
4. method of remittance;
5. cost relating to the payment
International business transactions are much plicated than domestic ones. The payment process is much longer, and
involves all kinds of risks.
Methods of payment in international trade:
*Open Account (O/A) 赊账(贸易);记账交易;赊购;赊销
This is the least secure method of trading for sellers, but the most attractive to buyers. It can only be used when sellers are confident that
payment will be received.
*Advance Payment 预付
This is the most secure method of trading for sellers but the least attractive to
buyers.
*Bills for Collection 托收票据
This method is more secure than open account but less so than a letter of credit. There is no guarantee of payment from
the bank although it is involved.
*Documents against Payment (D/P) 付款交单
D/P at sight
Upon presentation, the Buyer shall pay against documentary draft drawn by the Seller at sight. The shipping documents are to be delivered against payment only.
D/P after sight
The Buyer shall duly accept the documentary draft drawn by the Seller at××days’ sight upon first presentation and make payment on its maturity.
The shipping documents are to be delivered against payment only.
The Buyer shall pay against documentary draft drawn by the Seller
at××days after the date of B/L, or
at××days after the date of draft.
The shipping documents are to be delivered against payment only.
*Documents against Acceptance (D/A) 承兑交单
The Buyer shall duly accept the documentary draft drawn by the Seller at××days’ sight upon presentation and make payment on its