Dear all,

We are silicon rubber manufacturer,I met a Pakistan Client who want to buy RTV silicon from us.generally our payment term is TT in advance or L/C,but he is asking for a payment term of Bank Contract, but I never know this terms and conditions,does it exist in trade? and what should we do and take care? Thank you!

Carol

Quoting from [Carol-hj]:

Dear all,

We are silicon rubber manufacturer,I met a Pakistan Client who want to buy RTV silicon from us.generally our payment term is TT in advance or L/C,but he is asking for a payment term of Bank Contract, but I never know this terms and conditions,does it exist in trade? and what should we do and take care? Thank you!

Carol

Carol this would be a better question for the Payment and Finance forum.  But to answer your question there is no such thing as what your talking about.  The correct term would be a Documentary collection meaning either payment via D/P or D/A terms.  You can go to the Payment and Finance Forum to get the specifics on those two types of payment and how they work.

Ranger

Quoting from [Carol-hj]:

Dear all,

We are silicon rubber manufacturer,I met a Pakistan Client who want to buy RTV silicon from us.generally our payment term is TT in advance or L/C,but he is asking for a payment term of Bank Contract, but I never know this terms and conditions,does it exist in trade? and what should we do and take care? Thank you!

Carol

Dear Carol,

I suspect your wanted to say bank gurantee? if not,then,the is no financial term called bank contract. Also,the is this arrangment called cllateral managment agreement(CMA) Which is  a form of credit from the supplier to the buyer,but managed by a bank or Inspection agenies like SGS,ETC.check with your buyer again clarification,then check with your bankers.

Francis

Quoting from [Carol-hj]:

Dear all,

We are silicon rubber manufacturer,I met a Pakistan Client who want to buy RTV silicon from us.generally our payment term is TT in advance or L/C,but he is asking for a payment term of Bank Contract, but I never know this terms and conditions,does it exist in trade? and what should we do and take care? Thank you!

Carol

Never heard of Bank Contract either. I agree that your client may be referring to a L/C.  Would also like to point out that your customer has made a request for a contract that does not exist. Strongly suggest you verify your clients company and secure your payment through standard payment forms. Once you establish an on going relationship you can then explore other payment methods. There is little recourse for a bad contract once your products are sent out, so play it safe in the beginning and grow from there.

Quoting from [Carol-hj]:

Dear all,

We are silicon rubber manufacturer,I met a Pakistan Client who want to buy RTV silicon from us.generally our payment term is TT in advance or L/C,but he is asking for a payment term of Bank Contract, but I never know this terms and conditions,does it exist in trade? and what should we do and take care? Thank you!

Carol

I never hear of Bank Contract. The terms are only T/T and L/C.

I think you must carefully with your client and verify your clients company through search engine. ( may be your client is fraud )