1．Payment付款

（1）Introduction简介

In international trading，when and how the seller can get money from the buyer is of vital importance．Generally speaking，there are three different ways of payment：Remittance（汇付），Collection（托收），and Letter of Credit（L/C）（信用证）．

Remittance refers to the action of remitting money from the buyer to the seller through a bank according to the terms and time stipulated in the contract．Usually the buyer can adopt three different ways of remittance when he sends the money：Mail Transfer（M/T）（信汇），Telegraphic Transfer（T/T）（电汇），and Demand Draft（D/D）（票汇）．

Mail transfer is the most common way of remittance，when the buyer instructs his bank to pay the seller by ordinary mail or airmail．

Telegraphic transfer is similar to mail transfer except that the instruction is done by cable，which affects the payment more quickly，and more expensive．

Instead of the instructions of payment sent by mail or cable，they can also be put in the form of a draft drawn by the buyer's bank．This is demand draft．

Collection refers to the action of the seller drawing a bill of exchange（or a draft），with or without a document attached，and asking his bank to collect the money from the buyer．There are two types of collection：Collection on Clean Bill（光票托收），and Collection on Bill with Documents（Documentary Collection）（跟单托收）．

Collection on Clean Bill means that only a bill of exchange，that is，a bill to which no shipping documents are attached，is needed，to collect the money from the buyer．

Collection on Bill with Documents means that besides a bill of exchange，the shipping document(sometimes with other documents stipulated in the contract)are also needed，for collecting the money．

According to the ways in which the documents are released，the documentary collectionmainly can be subdivided into two kinds：Documents against Payment（D/P）（付款交单），and Documents against Acceptance（D/A）（承兑交单）．

Under the payment method of D/P，the seller won't release the shipping documents until the payment for the goods are affected．While under the method of(D/A)，the seller releases the documents upon the written promise from the buyer to pay the money after a period of time．

It should be noted that under D/A terms of payment，only a time（usance）draft（远期汇票）is used，and the draft usually ranges from 30 to 120 days．

The Letter of Credit is a letter issued by a bank at the request of the buyer to pay upon presentation of a series of documents(a bill of lading，an invoice，an insurance policy，etc．)from the seller．

L/C can be of various types，such as:

Irrevocable and Revocable L/C;

Confirmed and Unconfirmed L/C;

Sight and Usance L/C，etc．

（2）Credit Application Letters信用申请信函

Credit involves the purchasing and receiving of goods without immediate payment．Being able to“buy now and pay later”enables a purchaser to acquire goods even when cash is not currently available．Allowing individuals and businesses to buy on credit can increase a company's volume of sales．Therefore，buying and selling on credit have become a common and essential business practice．

Of course，before granting credit，a company must be reasonably sure of the customer's financial stability，and her ability and willingness to pay．These are verified by the exchange of credit information．Five types of letters are involved in credit correspondence:

①applications for credit;

②inquiries about credit worthiness;

③responses about credit worthiness;

④letters granting credit;

⑤letters refusing credit．

Sample Letters

a．Applications

Business account applications are often made by letter．A new business，for example，may wish to place a first order with a supplier or manufacturer and establish a credit line2 or open account．A letter of this kind should include credit references3(such as banks and other businesses that have extended credit)．

Dear Madam or Sir，

Enclosed is our cash order4 121 for 6 four-slice toasters，model 18E．

We would like to place this order on open account according to your regular terms．Our store has been open for two months，and you may check our credit rating5 with Ms．Peggy Sawyer，branch manager of the First Bank of Chicago，1160 State Street，Chicago，Illinois 60688．

Please let us know your decision regarding our credit as well as an approximate delivery date for our first order．

Sincerely yours，

b．Credit Inquiries

When checking a business's credit standing6，a company may contact the references．The letter of credit inquiry should contain all known information about the applicant，and it should assure the reference that all information will remain confidential．The inclusion of a reply envelope is a wise courtesy．

Dear Ms．Sawyer，

Kretchmer's Appliance Store has placed an order with us for $ 120 worth of merchandise and listed you as a credit reference．

We would appreciate your sending us information regarding Kretchmer's credit rating．We would especially like to know how long the owner has had an account with you and whether or not any of his debts are past due．We will，of course，keep any information we receive in the strictest confidence．

A reply envelope is enclosed for your convenience．

Sincerely yours，

c．Credit Responses

Companies that receive large numbers of credit inquiries often use their own form for responding．In this way，they can control the information given out and，especially，limit the information to hard facts:amounts owed and presently due，maximum credit allowed，dates of account's opening and last sale，degree of promptness in payment，and so on．Because a business's reputation is at stake，opinions should be expressed discreetly，if at all．Particularly when a credit reference is unfavorable，it is advisable to state only objective facts in order to avoid a possible libel suit．Most companies，moreover，reiterate somewhere in the letter that they expect the information provided to remai n confidential．

Dear Mr．Smedley，

We are happy to send you，in confidence，the credit information you requested concerning Mr．Bruce Kretchmer，owner of Kretchmer's Appliance Store．

Mr．Kretchmer，who was an appliance department supervisor at Lillian's Department Store until last fall，has had personal checking and savings accounts7 with us for the past ten years．His accounts were always in order，with adequate bank balances8 to cover all checks drawn．His appliance store，at 1135 State Street，was opened last December．For this undertaking，he borrowed $ 8，000 from this bank and has begun making regular payments against the loan．We are unaware of any future outstanding debts he may have．

On the basis of our experience with him，we believe Mr．Kretchmer to be credit worthy．

Yours truly，

d．Credit-Granting Letters

When all credit references are favorable，a letter is sent granting credit to the customer．Whether for a consumer charge or a dealer open account，the acceptance letter should:

①approve the credit;

②welcome the customer and express appreciatio n．

Dear Mr．Kretchmer，

It is my pleasure to welcome you as an SEC credit customer as your request for credit has been approved．

Your first order，for 6 Model 18E toasters，will be ready for shipment on Monday，February 22．

On the first of each month，we will prepare a statement of the previous month's purchases．Your payment is due in full on the tenth．With each statement，you will also receive a supply of order forms and return envelopes．

Arlene Ryan，your personal SEC sales representative，will visit you some time next week．In addition to bringing you catalogs and samples，she will explain our special dealer options9，such as advertising campaigns10 and rebate11 programs．

We are delighted that SEC can be a part of your store's beginnings and look forward to serving you for many years to come．

Sincerely yours，

e．Credit-Refusing Letters

Sometimes credit must be denied．A letter refusing credit must give the customer a reason，which，however，may be expressed vaguely for purposes of tact and protection of references．The credit-refusing letter must also try to encourage business on a cash basis;the tone，therefore，must be positive and in some way“you-oriented”．In addition，it is a good idea to suggest that the customer reapply for credit in the future，thereby letting him know that you nevertheless desire and appreciate his business．

Dear Mr．Cortland，

Thank you for your recent application for Hans＆Meyer's 60-day terms of credit．However，we believe it would not be in your best interest to grant you credit at this time．

An impartial credit investigation indicates that your company's present financial obligations are substantial．We fear that adding to those obligations could jeopardize your sound credit standing in the community．

Of course，Mr．Cortland，you are always welcome to buy from Hans＆Meyer's on a CBD12 basis．We will try our best to serve you in all ways possible．And if，in the future，your obligations should be reduced，feel free to apply again for terms of credit．We shall be delighted to reconsider．

Cordially yours，