详细了解T/T、L/C、D/P、D/A等国际贸易常见的付款方式

The closing of international trade orders often starts with payment. Let's simply list some common payment methods and the problems that will be encountered. Payment is distinguished from the receiving account: 1. corporate accounts: t/t, l/c, d/p, d/a, o/a. 2. Personal account: Western Union Remittance, Paypal, MoneyGram, T/T T／T T/T／T(Telegraphic Transfer) refers to a remittance method in which the remitting bank sends an encrypted telegram/telex or SWIFT to a branch or correspondent bank in another country (i.e. the remitting bank) to instruct to pay a certain amount to the payee at the request of the remitter. T/T payment is settled in foreign exchange cash, and your customer will remit the money to the foreign exchange bank account designated by your company. T/T belongs to commercial credit. After the goods are ready, if the customer pays all the payment, you can send the documents directly to the customer without going through the bank. T/t telegraphic transfer is divided into two types, one is called pre-TT (pre-t/t), and what is pre-TT (pre-t/t)? In the international trade industry, that is to say, before the consignor delivers the goods, it is called pre-TT (pre-T/T). This payment method is the safest trade method in international trade compared with the seller, because the seller doesn't need to bear any risks, so long as he receives the money, he will deliver the goods, and if he doesn't receive the money, he will not deliver the goods. Pre-TT (pre-T/T) can also be divided into many flexible ways, first 20% ~ 40% down payment, then 80% ~ 60% full payment before shipment. The specific proportion is flexible according to different situations. Type ii: post-TT (post-t/t) payment method. The post-TT (post-T/T) payment method is defined in the line as the buyer pays off the balance after the goods are delivered. Then, how can the buyer pay off the balance? Generally, post TT (post T/T) pays off the balance according to the copy of B/L (BL) bill of lading. The post-TT (post-T/T) mode is also flexible. Generally speaking, the international post-TT (post-T/T) payment method is generally popular, in which the guest pays 30% deposit first, and the other 70% is that the guest pays off the balance by seeing the copy of bill of lading (BL, B/L). Of course, some of them are 40% down payment, and 60% can be found in the bill of lading. Frequently Asked Questions about T/T Payment 1. The payee's information is wrong, which leads to the loss of account. Many customers are careless and write the payee's name incorrectly, such as wrong words. For example, when the name is too long, it is limited by the space to fill in. The remittance does reach the payee's account, but because of the wrong information, there is no way to release the money. Processing result: if the general situation is not solved on 15th (or according to the actual situation of each bank), it will be returned by the same way. Solutions: 1. Inform the customer to make information amendment, and clearly inform the customer that we can't collect the money and the order can't be executed without the change. 2. If the company name is too long after the second cooperation, you can tell the customer to write the part that cannot be written down in the address bar, and you can also collect money smoothly. 2. Post-T/T customers are in arrears with the final payment, and some customers are procrastinating and delaying payment. First of all, when signing the contract, clearly indicate the payment time of the final payment, for example, see clauses such as paying off the copy of the bill of lading within 3-5 working days, so as to avoid the delay in collecting the final payment. Of course, to avoid this situation, it is necessary to analyze and study customers, and it is best to avoid risks beforehand. picture L／C Letter of Credit (L/C) refers to a written document in which the bank (issuing bank) makes payment to a third party (beneficiary) or its designated party according to the requirements and instructions (of the applicant) or on its own initiative under the condition of meeting the terms and conditions of the letter of credit. That is to say, a letter of credit is a written document issued by a bank to promise payment conditionally. In international trade activities, buyers and sellers may distrust each other. After the buyer is worried about the advance payment, the seller does not deliver the goods according to the contract requirements; The seller is also worried that the buyer will not pay after delivery or submission of shipping documents. Therefore, it is necessary for two banks to act as guarantors for buyers and sellers, to collect and present documents on their behalf, and to replace commercial credit with bank credit (bank credit is higher than commercial credit). The tool used by banks in this activity is letter of credit. It can be seen that letter of credit is a certificate of conditional guarantee of payment by banks, and it has become a common settlement method in international trade activities. According to the general provisions of this settlement method, the buyer first deposits the payment with the bank, and the bank opens a letter of credit, informing the bank where the seller opens an account to tell the seller that the seller delivers the goods according to the terms stipulated in the contract and the letter of credit, and the bank pays for the buyer. Three obvious characteristics of letter of credit First, the letter of credit is a self-sufficient instrument. The letter of credit is not attached to the sales contract, and the bank emphasizes the certification in written form that the letter of credit is separated from the basic trade when examining the documents; Second, the letter of credit is pure documentary transaction. The L/C is in cash against documents, not subject to the goods. As long as the documents are consistent, the issuing bank should pay unconditionally; (Single agreement, document agreement)

Third, the issuing bank bears the primary liabilities for payment. Letter of credit is a kind of bank credit, which is a kind of guarantee document for banks. The issuing bank has the primary responsibility for payment. Classification of letters of credit There are many categories of letters of credit, which can be roughly divided into the following categories: A according to the documents of the credit or the requirements of the credit itself: (1) whether a bill of exchange under a letter of credit is accompanied by a shipping document is divided into: Documentary credit and bare bill credit. (1) Documentary Credit (documentary credit) is a letter of credit with documentary bills or documents alone. Documents here refer to documents representing the ownership of goods (such as ocean bills of lading, etc.), or documents proving that goods have been delivered (such as railway waybills, air waybills and postal parcel receipts). UCP600 documentary credit practice (2) Clean Credit is a credit that pays by Clean Draft without shipping documents. The bank may pay by L/C with bare ticket, and may also require the beneficiary to submit some non-freight documents, such as invoice and advance list. In the payment settlement of international trade, documentary credits are mostly used. (2) Based on the responsibility of the issuing bank, it can be divided into: 1) irrevocable letter of credit (irrevocable l/c). It means that once a letter of credit is issued, within the validity period, the issuing bank cannot unilaterally modify or cancel it without the consent of the beneficiary and relevant parties, and as long as the documents provided by the beneficiary comply with the provisions of the letter of credit, the issuing bank must fulfill its payment obligations. ② Revocable L/C. The issuing bank shall have the right to cancel the letter of credit at any time without the consent of the beneficiary or the relevant parties, and shall indicate the word "revocable" on the letter of credit. However, "UCP500" stipulates that as long as the beneficiary has obtained the guarantee of negotiation, acceptance or deferred payment according to the provisions of the L/C, the L/C cannot be cancelled or amended. It also stipulates that if the letter of credit does not indicate whether it is irrevocable or not, it shall be regarded as irrevocable. The latest UCP600 stipulates that banks cannot open revocable letters of credit! (Note: Irrevocable letters of credit are commonly used) (3) On the basis of whether another bank guarantees payment, it can be divided into: ① confirmed letter of credit (confirmed l/c). Refers to a letter of credit issued by an issuing bank, in which another bank guarantees that it will perform its payment obligations for documents conforming to the terms and conditions of the letter of credit. A bank that confirms a letter of credit is called a confirming bank. ② unconfirmed letter of credit (unconfirmed l/c). The letter of credit issued by the issuing bank has not been confirmed by another bank. (4) according to the different payment time, it can be divided into ① sight l/c; Refers to a letter of credit in which the issuing bank or the paying bank performs the payment obligation immediately after receiving the documentary draft or shipping documents conforming to the terms of the letter of credit. ② usance l/c. Refers to a letter of credit in which the issuing bank or the paying bank performs the payment obligation within the prescribed time limit when receiving the documents of the letter of credit. ③ Usance Credit Payable at Sight. The L/C stipulates that the beneficiary shall open a usance bill, which shall be discounted by the paying bank, and that all interest and expenses shall be borne by the issuer. In fact, this kind of letter of credit is still a prompt payment for the beneficiary, and there is a "usance L／C payable at sight" clause in the letter of credit. (5) According to whether the beneficiary's right to the letter of credit can be transferred, it can be divided into: (1) transferable l/c. It refers to the bank (collectively referred to as "transfer bank") where the beneficiary (the first beneficiary) of the credit can request authorization to pay, bear the responsibility of deferred payment, accept or negotiate, or when the credit is free to negotiate, it can request the transfer bank specially authorized in the credit to transfer all or part of the credit to one or several beneficiaries (the second beneficiary). The issuing bank should clearly indicate "transferable" in the letter of credit, and it can only be transferred once. ② Non-transferable letter of credit. Refers to a letter of credit in which the beneficiary cannot transfer the right of the letter of credit to others. Any letter of credit that does not indicate "transferable" is a non-transferable letter of credit.
(6) Letter of credit with red clauses. This kind of letter of credit allows the issuing bank to advance a part of the money to the seller after receiving the documents. This kind of letter of credit is often used in manufacturing industry. B according to the purpose of the letter of credit (1) revolving letter of credit (revolving l/c) After a letter of credit is used in whole or in part, its amount is restored to the original amount and can be used again until it reaches the specified number of times or the specified total amount. It is usually used under the condition of uniform delivery in batches. Under the condition of circulating the letter of credit according to the amount, the specific measures to restore the original amount are as follows: ① Automatic circulation. If a certain amount is used up in each period, it can be automatically restored to the original amount without waiting for the notice of the issuing bank. ② Non-automatic circulation. After a certain amount is used up in each period, the letter of credit can be restored to the original amount only after the notice from the issuing bank arrives. ③ Semi-automatic circulation. That is, if the issuing bank fails to give a notice to stop recycling within several days after each use of a certain amount, it can automatically return to the original amount from the × day. (2) reciprocal letter of credit (reciprocal l/c) Refers to the letters of credit opened by two L/C applicants with each other as beneficiaries. The amount of two letters of credit is equal or roughly equal, which can be opened simultaneously or successively. It is mostly used in barter trade or processing with supplied materials and compensation trade. (3) Back to Back L/C Also known as re-opening letter of credit, it means that the beneficiary requires the advising bank or other banks of the original certificate to open a new letter of credit with similar contents based on the original certificate, and the issuing bank of the back letter of credit can only open it according to the irrevocable letter of credit. Back-to-back letter of credit is usually opened when middlemen resell other people's goods, or when the two countries can't handle import and export trade directly, trade is communicated by a third party in this way. The amount (unit price) of the original L/C should be higher than that of the back L/C, and the shipment period of the back L/C should be earlier than the original L/C. (4) Advance credit/packing credit It means that the issuing bank authorizes the paying bank (advising bank) to prepay all or part of the credit amount to the beneficiary, and the issuing bank guarantees to repay and bear the interest, that is, the issuing bank pays first and the beneficiary presents the bill later, contrary to the long-term credit. The advance letter of credit shall be paid by the exporter's bare ticket, and the beneficiary is also required to attach an instruction for supplementing the documents stipulated in the letter of credit. When the shipping documents are handed in, the paying bank will deduct the interest of the advance payment when paying the remaining payment. (5) Standby credit It is also called Commercial paper credit and guaranteed credit. Refers to the certificate that the issuing bank promises to undertake certain obligations to the beneficiary at the request of the applicant. That is to say, the issuing bank guarantees that when the applicant fails to fulfill its obligations, the beneficiary can obtain reimbursement from the issuing bank as long as it relies on the provisions of the standby letter of credit and submits the issuer's default certificate. It is bank credit, which is a way for beneficiaries to get compensation when the issuer defaults. Explanation of Common Terms in Letter of Credit Issuer: refers to the person who applies for opening a letter of credit, which is also called the issuer in the letter of credit. Obligation: to issue a certificate according to the contract; Pay a proportional deposit to the bank; Pay redemption bill in time. Rights: check and redeem the bill; Inspection and return of goods (all based on letter of credit) Note: There are two parts in the application for issuing the certificate, namely, the application for issuing the certificate and the statement and guarantee to the issuing bank (stating that the ownership of the goods belongs to the bank before the redemption bill is paid; The issuing bank and its correspondent bank are only responsible for whether the documents are qualified on the surface; The issuing bank is not responsible for errors in document transmission; Not responsible for "force majeure"; Guaranteed payment redemption slip; Guarantee to pay all expenses; The issuing bank has the right to add a deposit at any time; Have the right to decide the insurance for goods and increase the insurance level, and the expenses shall be borne by the applicant. Beneficiary: refers to the person named in the letter of credit who has the right to use the letter of credit, that is, the exporter or actual supplier. Obligation: after receiving the letter of credit, it should be checked with the contract in time. If the letter of credit is not in conformity, it should be requested to modify or refuse to accept it as soon as possible, or the applicant should instruct the issuing bank to modify the letter of credit; If accepted, deliver the goods and notify the consignee, prepare the documents and deliver them to the negotiating bank for negotiation within the specified time; Be responsible for the correctness of the documents. In case of any discrepancy, the issuing bank's instructions to change the documents shall be followed and the documents shall be presented within the time limit stipulated in the letter of credit. Right: if it is refused to be modified or still inconsistent after modification, it has the right to unilaterally cancel the contract and reject the letter of credit after notifying the other party; After presentation of documents, if the issuing bank closes down or refuses to pay unreasonably, it can directly ask the applicant for payment; Before collection, if the applicant goes bankrupt, he can stop the shipment of goods and handle it by himself; If the L/C has not been used when the issuing bank closes down, the applicant may be required to open it separately. Issuing bank: refers to the bank that accepts the entrustment of the applicant to open a letter of credit, and it is responsible for guaranteeing payment. Obligation: issue the certificate correctly and in time; Take the first payment responsibility. Right: charge handling fee and deposit; Reject the non-conforming documents of the beneficiary or negotiating bank; After payment, if the applicant is unable to pay the redemption bill, he can handle the bill and goods; If the goods are insufficient, the applicant can claim the balance. Notifying bank: refers to the bank entrusted by the issuing bank to transfer the letter of credit to the exporter, which only proves the letter of credit