my question is what other factors can be there for the customers to release their goods from PAD facility as soon as possible.
thanx
Quoting from [Saad Khan]:
Well some banks offer a fund based facility and it is named as "payment against documents", on agreed basis the bank makes payment on behalf of the customer and receives goods, but the customers would not like the goods to remain in the PAD as due to high value to markup which they have to to pay to the bank.
my question is what other factors can be there for the customers to release their goods from PAD facility as soon as possible.
thanx
just call your bank and discuss with them, simple is this
KATIF APPAREL
Katif apparel is a well managed enterprises, located in the city of Lahore (heart) of Pakistan, well known for its skilled manpower and historical values. We are offering varity of apparel products under the one ...
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First I think you have a basic misconception of how the process works. D/P is not a fund nor is D/A, they are both processes for payment. I think you should take a look at the following page for a better understanding. http://www.credit-to-cash-advisor.com/Home/Articles/CreditManagement/DP-DAandInternationalSales
The easiest way to remember them is that:
- D/P is like a sight draft, immediate payment by the bank if the documents are in order.
- D/P is an acceptance draft, a credit to be paid at some future time.
Ranger
Me Tech Supply
ME Tech Supply a D. B. A provides sourcing solutions for both small and medium sized businesses. We are members of the GSAA whose Agents have verified more than 2. 5 million companies World WideWe offer low cos...
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Quoting from [Saad Khan]:
Well some banks offer a fund based facility and it is named as "payment against documents", on agreed basis the bank makes payment on behalf of the customer and receives goods, but the customers would not like the goods to remain in the PAD as due to high value to markup which they have to to pay to the bank.
my question is what other factors can be there for the customers to release their goods from PAD facility as soon as possible.
thanx
I agree with ranger, maybe what you mention "payment against documents", is "Documents Against Payment" or known as * (another one is DA / Doct against Acceptance). it's not Bank facility (except the bank have effected financing the document) , it's actually trade/payment terms that applied intenationaly .
If you want to release the goods as soon as possible, you have to pay it, thats the way your seller protect their goods, can not be released after you pay it.
Rgds