Posted 04 Jan 2011 23:19
Letters of credit (referred to as the L / C) payment, with the development of international trade, international trade settlement banks to participate in the process of evolving. Because the purchase price paid to obtain the shipping documents meet the credit requirements for the condition to avoid the risk of payment in advance, so the credit payment to a large extent solved the import and export of both payment and delivery issues in the conflict. It has become a major international trade payment. A seller, L / C provided the greatest benefit is a reliable accountant - the payer, that is banks, and is designated a major bank. If he got the L / C does not meet the sale and purchase agreement, he can terminate the contract but not delivered, while another claims (if the market use of losses). Sale and purchase agreement are met, and no special requirements difficult to achieve, after he got to do some thing to do, such as looking for vessels, on the last day before the shipment of the number of contract requirements, delivery of a variety of goods out, then get a set of documents, including the most important bill of lading (B / L), then go to settlement. L / C requirements are generally clean B / L, required B / L content and L / C contents of the agreement. Therefore, the seller should be shown with in strict accordance with the contract on time delivery of goods, or get with the L / C inconsistent with B / L can not be a settlement. Sale and purchase agreement and the L / C will not require dirty B / L is also acceptable, because what is the dirty B / L the scale difficult to determine, if all the rot that is unclean B / L, and only a little small millions of dollars in damage to the trading in looks nothing. After all, there can be comments, but also dirty B / L, as usual reason this should not affect the settlement because it is within the acceptable level, the buyer should not be censured. But the problem is not here, agreed in advance, perhaps you can modify L / C or tell the bank that the buyer what is wrong with the file L / C is still acceptable, does not affect the money. Who can know in advance that there would be nothing to lose, to what extent, what to comment? Moreover, as a buyer to buy only a good line, that is, to clean B / L, rather than claims. Can not have the endorsement will meet the B / L printed above the so-called: the surface in good condition. As long as the shipper to get this B / L (also known as "clean" bill of lading), to ensure the bank will be able to get the money settlement. So, L / C to the seller to provide a reliable accountant, the seller use of L / C is basically like the world to do business with any buyer. He did not know whether the buyer know, keep bad faith, and regardless of whether the place where the buyer and the political stability of **** controls, and even regardless of whether the buyer will immediately close down and so on. Anyway, he believes the bank, with the L / C to the settlement, the banks must pay. Advantage of the buyer is to pay freight came out he was. As long as the two sides to do business honestly, buyers will not take much risk. Because at least the seller has really delivered the goods, and got on board bill of lading (B / L), and the number of them, date and surface conditions is consistent with the sale and purchase agreement. Unlike mail order, the buyer paid for, even the two documents can not get, buyers are not sure whether the goods in the end by post. Now, with B / L, the buyer can see all the conditions of the contract have been met, he put the money through banks. Of course, buyers can also be in L / C provisions of this voyage in the other documents they need. There are different kinds of trade documentation requirements, if it is imported food, the buyer may have to inspection reports, which can be in the L / C in the states, write up, the banks must file under the settlement package. In this way, buyers get the whole set of documents, you can wait for getting goods, and after customs, taxes, import procedures will be easier. Buyers can also be based on L / C requires banks to provide credit support. International trading of millions of dollars at every turn, and costly. VIP trading immediately made money out of it, even large companies can also cause financial strain, so often to rely on bank loans. Some companies, especially small and weak, he did not have enough strength and big sale, but he was familiar with the bank tends to support it. Buyers open L / C, as long as the buyer to buy goods worth less than the number of limits to be familiar to the bank to open L / C, without the need for other special guarantees. Bank through the L / C practice, so that buyers do not have the money or very little money can do big sale, $ 4,000,000 can open the L / C to buy the ticket goods. If such goods at the destination port before giving money to buyers and sellers often do not agree, even if agreed, the buyer is also too much, come up with 400 million guarantee (to ensure that goods to the port for unloading payment) is not so simple, but 400 million L / C to the contrary, it will be easy to open. Buyers still have to use one day to $ 4,000,000 in exchange for documents, it was one thing a few months later. Ship to the destination port city take some time, during the second sale will generate a lot of - the buyer can transfer the whole or partial sell the tickets ticket goods, to obtain payment, no worries about the changing nature of the documents are not returned. Use of the entire international trading L / C payment methods that can reduce many costs and save a lot of trouble. Many transactions can be reached through several telex, does not require you to do more work, thus reducing the cost and time. One is the investigation costs - by L / C, sellers do not need to investigate the buyer's credit can be traded. Otherwise, how hundreds of tens of millions of contracts can be used several power came to solve it? Of course, the use of L / C may also be some problems. For buyers, the only worry is the L / C broke down, mainly file error (discrepancy). In particular, banks are sometimes deliberately looking for trouble, check the file check is very strict, the wrong letter also not have to tell you to change. According to ICC's investigation, L / C documents for the first time **** (First tender) go wrong when the banks fight back accounted for 40% or so. However, the general would not pose much of a problem, because the seller only slightly modified the file, the credit period, in the second settlement (second tender) when the settlement will be able to cross the border. In addition, the reliability of letter of credit or not, the most important is to see the file a character, if a file can be as long as they sign the word settlement, then the L / C positive and reliable; the other hand, if it requires a lot of files , and many of them do not fully document under your control, but subject to others, it is necessary to take certain risks. If insured, the owner paid the premium as long as there will be policy, if there is anything to change the owner Jiaoren to change it easily. Second, invoices, bank singled out what was wrong, the owner can go back to their free to modify. More concerned about the document, is the need for the hands of a third party B / L, inspection reports or other official documents such as reliability, since that time anyway, people can not. Huo B / L to add comments, change the format, etc., the owner was no way, the results Results can not sink. Thus, a seller, L / C documents in the less, the more simple and more reliable.