Terms of payment

Offers usually state the terms on which the goods are to be paid or terms of payment.

Terms of payment usually mean the currency, time of payment, mode of payment and many details.

In foreign trade transactions various modes of payment are practised, among which the most popular are as follows:

– by a banker's transfer;

– by a letter of credit;

– for collection;

– by drafts;

– on an open account.

Sometimes mixed terms are practiced. That depends on the value of the goods, volume of the goods, time of delivery and many other factors.

Here is an example of how terms of payment can be stipulated in the offer for some expensive sophisticated equipment:

We propose the following terms of payment...

Ten percent of the total sum should be paid in advance by telegraphic banker's transfer.

Fifty percent of the total sum should be paid by telegraphic banker's transfer within 30 days after your bank receives shipping documents.

Forty percent of the total sum should be paid by drafts at 90 days' sight.

1. Ответьте на вопросы по тексту:

1. Do offers usually state terms of payment?

2. What particulars do terms of payment cover?

3. What terms of payment are practiced in foreign trade?

4. On what does the choice of terms of payment depend?

5. What example of terms of payment is quoted in the text?

2. Найдите в тексте эквиваленты слов и выражений профессионально-ориентированной лексики:

Предложение, условия платежа, товары оплачиваются, сделки международной торговли, способы платежей, банковский перевод, аккредитив, валюта на инкассо, тратта (вексель), по открытому счёту, ценность товара, объем товара, время доставки, общая сумма, произвести предоплату, погрузочные документы.

3. Расскажите, используя профессионально-орентированную лексику, что говорится в тексте о:

Terms of payment, modes of payment.