Only the Letter of Credit for You
A: Very well, we have settled everything about this transaction, exceptthe terms of payment.
B: As you know,we prefer the L/C 20 days in advance which expires 15days after receiving the paking list.
A:I suppose you have known our financial standing and credit well nowafter our long-term cooperation. We know an irrevocable L/C can ensure thatthe seller gets payment duly. But, on the other hand, it would increase thebuying cost. Therefore, could you consider giving us D/P this time？
B: I am sorry. But our rules only allow us to accept other terms ofpayment by L/C, although the buyer has had two or three transactions with usbefore.
A: But why not if you have known the buyer's credit after several deals？
B: We hope you can understand. We have got some serious lessons fromthe credulity. One of them was through D/P documentary collection. When theshipment worth US $ 50 000 was effected, the buyer refused to make thepayment. But we can do nothing with it. And that buyer had had one or twodeals before this one.
A : I see. But the flexible terms of payment will definitely bring you moreorders as well as facilitate the buyers' purchasing.
B: Sure. We don't mean we won't accept other terms of paymentforever. As a matter of fact,we will do so when we have known well about thebuyer's credit after a real long-term cooperation.