世纪商务英语

It’s known to all of us that price which should be carefully considered is one of the most important factors in international business activities
A payment term is one of the main content of international trade contract. Different method of payment for trade both sides in trade settlement risk and management of the money burden are not the same.
In order to promote the realization of transaction purpose. We must be select the correct payment method what can make the import and export both sides risk controlled in payment for goods receipt and payment and get an accommodation in terms of cash flow.
Note in a certain currency amount. For the purpose of pay can transfer and circulation of debt obligations. paper can be divided draft .check and promissory note .Drafts are used most in international trades.
Draft, also referred to as bill of exchange ,is an unconditional written order issued by one person to another, requiring the latter to pay on demand, or at affixed time or determinable future time a sum of money to or to the order of specified .person or to bearer.
Check is an unconditional order drawn by a depositor on a bank,
requiring the bank to pay the sum of money to the payee .A check is always at sight and it is called a bank’s demand draft. Promissory note is an unconditional written promise made by one person to another person .engaging to pay on demand. or at a fixed or determinable future time a sum of money to or to the order of a specified person, or to the bearer.
Main international terms of payment with remittance .L\C and collection.
Remittance can be divided into M\T.T\T and D\D .L\C have many types, irrevocable L\C .sight L\C and usance L\C .confirmed L\C and unconfirmed L\C. Collection can be divided into D\P or D\A.
According to the international trade risk and complexity, to select the correct instruments of payment and terms of payment is one of the most important.。