payment by a letter of credit

简明释义

信用证方式的结算

英英释义

例句

1.The importer requested payment by a letter of credit to ensure the supplier would receive funds upon shipment.

进口商要求以信用证方式付款以确保供应商在发货后能收到款项。

2.The seller agreed to payment by a letter of credit after the buyer provided a bank guarantee.

卖方在买方提供银行担保后同意以信用证方式付款。

3.To minimize risk, the company opted for payment by a letter of credit when dealing with new international partners.

为了降低风险，公司在与新的国际合作伙伴交易时选择了以信用证方式付款。

4.Using payment by a letter of credit can help facilitate smoother transactions in international trade.

使用以信用证方式付款可以帮助促进国际贸易中的顺利交易。

5.The agreement stipulated that all transactions would be conducted via payment by a letter of credit.

协议规定所有交易都将通过以信用证方式付款进行。

作文

In the world of international trade, ensuring that payments are made securely and efficiently is of utmost importance. One popular method of facilitating these transactions is through a financial instrument known as a letter of credit. This document serves as a guarantee from a bank on behalf of the buyer, assuring the seller that they will receive payment as long as certain conditions are met. The phrase payment by a letter of credit refers specifically to this method of transaction, where the payment is processed through the banking system rather than directly between the buyer and the seller. This mechanism not only protects the interests of both parties but also helps to build trust in commercial relationships.When a buyer wishes to purchase goods from a seller located in another country, they often face various risks, including the possibility that the seller may not deliver the goods as promised or that the buyer may not have sufficient funds available at the time of delivery. To mitigate these risks, the buyer can request their bank to issue a letter of credit in favor of the seller. This letter outlines the terms and conditions under which the payment will be made, such as the required documentation that the seller must provide to prove that the goods have been shipped.Once the letter of credit is issued, the seller can be confident that they will receive payment once they fulfill the stipulated conditions. For instance, if the letter of credit requires the seller to submit shipping documents and an invoice, they can proceed with the shipment of goods, knowing that their payment is secured. The bank acts as an intermediary, ensuring that the funds are released to the seller only when all requirements are satisfied, thus minimizing the risk of non-payment.Moreover, payment by a letter of credit is beneficial for buyers as well. By using this method, they can negotiate better terms with sellers, knowing that their financial exposure is limited. Additionally, since banks typically conduct thorough checks before issuing a letter of credit, buyers can rely on the bank’s due diligence to some extent, which adds an extra layer of security to the transaction.However, it is essential to understand that while letters of credit offer significant advantages, they also come with costs and complexities. Banks charge fees for issuing letters of credit, and these costs can vary depending on the amount and type of letter. Furthermore, the process can be time-consuming, especially if discrepancies arise between the documents provided by the seller and the requirements specified in the letter of credit. Such discrepancies can lead to delays in payment and may even result in the buyer being unable to secure the goods.In conclusion, payment by a letter of credit is a vital tool in international trade that provides security and reassurance to both buyers and sellers. It facilitates smoother transactions and fosters trust in business relationships across borders. However, participants in this process must be aware of the associated costs and potential complications. By understanding how letters of credit work and their implications for trade, businesses can make informed decisions that enhance their operational efficiency and financial security.

在国际贸易的世界中，确保支付安全和高效至关重要。一种流行的促进这些交易的方法是通过一种称为信用证的金融工具。这份文件作为买方的银行的担保，向卖方保证，只要满足某些条件，他们将收到付款。短语通过信用证付款特别指这种交易方式，其中付款通过银行系统处理，而不是买方和卖方之间直接进行。这一机制不仅保护了双方的利益，还帮助建立商业关系中的信任。当买方希望从位于另一个国家的卖方购买商品时，他们通常面临各种风险，包括卖方可能不会按承诺交付商品，或买方在交付时可能没有足够的资金。为了降低这些风险，买方可以要求他们的银行向卖方开具信用证。这封信列出了付款将进行的条款和条件，例如卖方必须提供的证明商品已发货的所需文件。一旦信用证被开出，卖方可以确信，只要他们满足规定的条件，就会收到付款。例如，如果信用证要求卖方提交运输文件和发票，他们可以放心地发货，因为他们的付款是有保障的。银行作为中介，确保只有在所有要求得到满足时，资金才会释放给卖方，从而最大限度地降低未付款的风险。此外，通过信用证付款对买方也有好处。通过使用这种方法，他们可以与卖方协商更好的条款，因为他们知道自己的财务风险有限。此外，由于银行在发出信用证之前通常会进行彻底检查，买方在某种程度上可以依赖银行的尽职调查，这为交易增加了额外的安全层。然而，必须理解的是，虽然信用证提供了显著的优势，但它们也伴随着成本和复杂性。银行会对开具信用证收取费用，这些费用可能根据金额和类型而有所不同。此外，如果卖方提供的文件与信用证中规定的要求之间存在差异，过程可能会耗时较长。这种差异可能导致付款延迟，甚至可能导致买方无法获得商品。总之，通过信用证付款是国际贸易中一种重要的工具，为买方和卖方提供安全和保障。它促进了更顺利的交易，并在跨境商业关系中培养信任。然而，参与这一过程的人必须意识到相关的成本和潜在的复杂性。通过了解信用证的运作方式及其对贸易的影响，企业可以做出明智的决策，从而提高运营效率和财务安全。