3.3 Pay by Letter of Credit 信用证付款
M: Well, we've settled the problems of price, quality and quantity. What mode of payment do you wish to employ?
W: Irrevocable letter of credit, of course. It's the normal terms of payment in international business.
M: Could you adopt D/A or D/P? You see I have to pay a deposit when I open a letter of credit. That will tie up my funds and add to the cost of my imports, especially for such a huge order.
W: You might consult your bank and see if you could reduce the required deposit to a minimum.
M: Anyhow, there would be certain bank charges. We've done business for years and you should have some faith in our credit. It would help me greatly, if you could accept D/A or D/P. It makes no difference to you, but it does to me.
W: Well. As you understand, the irrevocable L/C gives the exports additional protection of the banker’s guarantee. We always ask for L/C for our exports, and the other way around, we pay by L/C for our imports. We only accept L/C for regular orders.
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