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What are the payment methods for foreign trade export?

2018/11/15 18:45:18 Viewers:
What are the payment methods for foreign trade export?

According to the current practice of foreign trade export payment, foreign trade export payment is mainly divided into three types: L/C, T/T and D/P. Among them, L/C, with its high security, is a widely used payment method for foreign trade export payment, while T/T, with its high convenience, is used in foreign trade. The frequency of export payment is higher, and the probability of D/P is lower, but because we need to use it occasionally, we also need to know about D/P as a foreign trade export payment method.

First of all, the letter of credit, one of the most frequently used payment methods in foreign trade export payment, is no stranger to a senior international trade worker when it comes to raising a letter of credit, because it is a very common form of foreign trade export payment, and it will be accepted sooner or later in the process of foreign trade. A method of payment for foreign trade touched. Although there are a lot of professional terms in the dense English words of L/C, which make us spend a lot of time in interpreting and cutting words, it is a kind of payment method with strong guarantee for obtaining payment in theory if we want to consider it from the aspect of high security. Because a letter of credit is a commercial contract guaranteed by a bank, even if there are many rules and regulations on it, but if we do it one by one according to the above provisions, and provide the corresponding documents to the bank according to the conventional foreign trade process and requirements, then the bank must pay the corresponding money. Thus, the letter of credit is almost the same as the existence of money, which is why the seller can rely on the relevant foreign trade export letter of credit to the bank to carry out the operation of related loans when the capital turnover is relatively compact. But in practice, payment by L/C is not so perfect, because the L/C contains a lot of terms and conditions. Occasionally, some of them are very difficult to achieve. If they fail to do so, they will lead to artificial breach of contract, thus they can not get the export payment as they wish. . Of course, these are some low probability cases. In most cases, the operation of L/C payment still has high security.


Secondly, telegraphic transfer, a payment method commonly used in foreign trade export payment, generally appears in foreign trade cooperation with countries with good credit, such as Europe and the United States. In the process of foreign trade export payment, a common method of payment is to "pay deposit - - arrange production and delivery - - customers receive copies of documents to pay the balance - - sellers receive payment to send a complete set of documents" such a process.

The last one is D/P, which is essentially a kind of commercial credit and belongs to a kind of collection mode. The seller will implement a series of practical operations such as sending documents after receiving payment from the seller. Moreover, D/P, as a form of payment for export trade, can be divided into D/P at sight and D/P at forward. This form of D/P is more convenient in procedure and has a positive role in promoting the expansion of exports, but it requires sellers to bear a very high risk of foreign exchange receipt.