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Which option to select for credit Payment Terms

4 replies [Last post]
Tue, 07/07/2009 - 22:55
face2win
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Joined: 08/25/2007
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Dear Friends,

I wanna open a local L/c with the supplier.

The payment terms agreed between us is 60 days from the date of receipt of material.

The L/c opening form has the following coloumn, I need to select the correct one. Please help me.

1. Payment at Sight.

2. Deferred Payment at.

3. Acceptance of draft at

4. Negotiation.

I beleive I must select option 3, but not sure, can you please update me the correct option.

‹ B/L for DOC LC not controlled or generated by Beneficary Reimbursing Bank ›
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Thu, 07/09/2009 - 02:50
#1
billy
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Joined: 03/31/2009
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Payment

In ICC of UCP 600 or ISBP, Payment term is necessary for LC practise. No. 1, 2, 3, 4 are dfferent term and separate use. When you do not definitely understand, you might wrong all the time.

You should select No.4 for Negotiation.

Regards,

Billy

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Thu, 07/09/2009 - 13:38
#2
Frammi
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Joined: 08/17/2007
Posts:
Negotiation only works with sight tenor!

With usance 60 days you need acceptance or deferred payment credits.

But "60 days after/from receipt of goods" is not such a good idea, as you need a document to show such date and most documents only show date of dispatch but not date of receipt.

 

   -Each long journey starts with a small step-

Best regards

Frammi

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Thu, 07/09/2009 - 04:50
#3
Catalyst
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Joined: 06/15/2007
Posts:
60 days from acceptance...!

Hi Billy,

Your advice does not fit the specified requirement. IMHO smmujeeb appears to have advised correctly. 

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Wed, 07/08/2009 - 07:19
#4
smmujeeb
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Joined: 07/29/2008
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Which option to select for credit Payment Terms

Option 3, 60 days by acceptance.

Regards!!!!

Mujeeb :-) 

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