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Methods of payment



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Today a modern businessman must be very educated in all spheres of market trade. So the knowledge of the main methods of payment under the different contracts becomes very necessary.

There are a lot of methods and manners of payment in private and international trade. They are classified by the numerous features and signs, for example:

l) cash payment; cashless payment

2) full payment; separate payment (payment by installments)

3) advance payment; payment after executing a transaction

4) payment by credit; immediate payment for the full value of the contract.

The main methods of payment are: cash payment and payment on a credit basis. Cash payment is divided into several methods:

1) by cheque:

as a cheque is payable in the country of origin it is not very often practiced in international business. That's why cheques are usually used for payment in home trade.

2) by telegraphic or telex transfers or post (mail),

3) by a Letter of Credit (or just: by credit),

4) by payment for collection.

 

Ознакомьтесь с содержанием текста и выполните задание к нему.

1. К какому пункту раздела «методы оплаты» относится абзац «payment by cheque»?

2. Why are cheques usually used for payment in home trade?

3. К какому пункту раздела относится этот микротекст?

Payment in advance: the Importer credits the Exporter, for a example, the Contract may stipulate a 10 or 15% advance payment, which is advantageous to the Sellers. This method is used when the Buyers are unknown to the Sellers.

4. When is this method used?


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