款到发货英文术语

款到发货英文术语
As a content creator, it's important to be familiar with the terminology related to business transactions. One such term
is "款到发货" (kuǎn dào fā huò), which refers to the practice of receiving payment before shipping out a product. Here are some English equivalents and explanations:
1. Prepayment: This is a general term for any payment made in advance of a product or service being delivered. In the context of "款到发货," prepayment specifically refers to paying for a product before it is shipped.
2. Pay before delivery: This phrase expresses the same idea as "款到发货" but is more straightforward and less idiomatic. It could be used in a contract, for example, to stipulate
that the buyer must pay before the seller ships the goods.
3. Cash in advance (CIA): This is a more formal term commonly used in international trade. It refers to a payment method in which the buyer pays the seller in full before the goods are shipped. CIA is often used for high-value transactions or when the buyer and seller are not familiar with each other.
4. Letter of credit (L/C): An L/C is a financial instrument issued by a bank that guarantees payment to the seller as long as certain conditions are met (such as providing proof of shipment). This is a common tool used in international trade to mitigate the risk of non-payment.
5. Advance payment guarantee (APG): Similar to an L/C, an APG is a financial instrument that guarantees payment to the seller if the buyer defaults on their payment. However, an APG is issued by the buyer's bank rather than the seller's.
6. Escrow: Escrow is a service that acts as a neutral third party between the buyer and seller. The buyer deposits the payment into an escrow account, which is then released to the seller once the goods have been received and inspected. Escrow provides a level of security for both parties in the transaction.
In conclusion, understanding the concept of "款到发货" is essential for conducting business with Chinese suppliers. The above English equivalents can help clarify this practice and provide a common language for negotiating and formalizing transactions.。