negotiating payment
TRANSCRIPT
FIVE STEPS IN
NEGOTIATING PAYMENT
Than Quynh Trang – Tran Hai Yen
INTRODUCTION
CONTENT
PAYMENT TERMSPAYMENT TERMS
5 STEPS IN NEGOTIATING PAYMENT5 STEPS IN NEGOTIATING PAYMENT
TRANSLATIONTRANSLATION
CONCLUSIONCONCLUSION
PAYMENT TERMS
The condition under which the seller complete a sale.
Specifie the period allowed to a buyer to pay off the amount due
METHOD OF PAYMENTIssue of payment :
The word “ Cash”
• Interior = within a country money or credit• Exterior = international trade checks & bank transfer
Trust
STEP1
METHOD OF PAYMENT
Payment in PRIVATE LIFE :
• Cash on delivery
• Cash with order
STEP1
METHOD OF PAYMENT
STEP1
OPEN ACCOUNT
Time of payment : as agreed, i.e : 30 days
Goods available to buyer : before payment
Risks to seller : buyer do not pay, delay of foreign exchange
When appropriate : absolute trust, seller has sufficient liquidity in case of delay, high banking fees avoided
STEP1
OPEN ACCOUNT
Example:
Inter-Bank transfer ( SWIFT)
Buyer’s Cheque
Banker’s Draft
International Money Orders
STEP1
EXPORT CREDIT INSURANCE (ECI)
Gives the exporter conditional assurance that payment will be made if the buyer is unable to pay.
Time of execution : since the contract is signed or from the time the goods are shipped.
Covers : currency inconvertibility, expropriation, changes in impore and export regulations
STEP1
EXPORT CREDIT INSURANCE
(ECI)
Types of ECI :
Short-term : payment terms < 2 years
Medium to long-term : >= 2 years
Benefits for seller : security, offer a safe open account
STEP1
BANK GUARANTEEA guarantee ensures that the liabilities of a debtor will be
met. In other words, if the debtor fails to settle a debt, the bank will cover it.
Types of guarantee:
Finacial BG : a bond which is not cancelable and ensures the payment .Perfomance BG : a commitment of the buyer to pay, ensures by the bank
STEP1
LETTER OF CREDIT
A binding document that a buyer can request from his bank in order to guarantee that the payment for goods will be transferred to the seller.
Benefit for seller : a bank guarantees a payment in any case
STEP1
v
PREPAYMENT
An importer realizes the payment for the items to be imported in advance prior to the shipment of goods.
Risks to the buyer : non – delivery
Appropriate when : the Importer company is new, Importer's credit status is doubtful, political risks are very high in the importer’s country.
STEP1
Letter of credit
Bank guarantee
Export Credit Insurance
Time of paymentThe date on which a declared stocks is scheduled to be paid Depends on the method of payment : before – on (POD) – after delivery
TIMING
STEP2
PLACE OF PAYMENT
Payment shall be deemed to have been made only when the contract sum is paid into the seller’s bank account and is at the seller’s full disposal
STEP3
PLACE OF PAYMENT
STEP3
POINT AT WHICH MONEY DEEMED TO BE PAID
PLACE OF PAYMENT
STEP3
Article 57. Vienna Sales Convention 1980
(1) If the buyer is not bound to pay the price at any other particular place, he must pay it to the seller
(a) at the seller’s place of business; or
(b) if the payment is to be made against the handing over of the goods or of documents, at the place where the handing over takes place.
(2) The seller must bear any increase in the expenses incidental to payment which is caused by a change in his place of business subsequent to the conclusion of the contract.
DELAY
STEP4
Payment made after the agreed date of payment
Might be excused during a grace period or by a force majeur
RESULTS OF DELAY
STEP5
Harm to the exporter
Interest should be compensated to the exporter by the buyer under the terms of the contract
Interest payable is simply added to the outstanding sum
TRANSLATIONS
Prices in the price list don’t include delivery costs, finish cutting and tax VAT. In case of payments delay we count interests which are specified in the contract. If the customer delays in payments of the previous order or in the prepayment – we can stop or cut the realization of the order or refuse giving out the goods.
Giá được niêm yết trong bảng giá không bao gồm chi phí giao hàng và thuế VAT. Trong trường hợp chậm thanh toán chúng tôi tính lãi theo như đượcquy định cụ thể trong hợp đồng. Nếu khách hàng chậm trễ trong việc thanh toán các đơn hàng trước hoặc trong việc thanh toán trước, chúng tôi có thể chấm dứt việc thực hiện các đơn đặt hàng hoặc từ chối giao hàng.
Prices in the price list don’t include delivery costs and tax VAT. In case of payments delay we count interests which are specified in the contract. If the customer delays in payments of the previous order or in the prepayment – we can stop or cut the realization of the order or refuse giving out the goods.
TRANSLATIONS
Delayed Payment
If payment of any sum payable is delayed, the Buyer shall be entitle to receive interest on the amount unpaid during the period of delay. The interest shall be at an annual rate three percentage points above the discount rate of the central bank in the seller’s country
Chậm thanh toán Nếu việc thanh toán bất kỳ một khoản tiền phải nộp nào bị chậm trễ, người mua sẽ được hưởng một khoảng lãi suất tính trên số tiền chưa trả trong khoảng thời gian chậm trễ. Lãi suất sẽ có một tỷ lệ hàng năm trên ba phần trăm lãi suất chiết khấu của ngân hàng trung ương tại nước của người bán
Delayed Payment If payment of any sum payable is delayed, the Buyer shall be entitle to receive interest on the amount unpaid during the period of delay. The interest shall be at an annual rate three percentage points above the discount rate of the central bank in the seller’s country
TRANSLATIONSInterest penalty
An interest penalty shall be paid automatically by the designated payment office, without request from the Contractor, if payment is not made by the due date and the conditions listed in paragraphs (a)(6) through (a)(8) of this clause are met, if applicable. However, when the due date falls on a Saturday, Sunday, or legal holiday when Federal Government offices are closed and Government business is not expected to be conducted, payment may be made on the following business day without incurring a late payment interest penalty
Phạt lãi suất Một hình phạt lãi suất phải được cơ quan thanh toán được chỉ định tự động trả mà không có yêu cầu từ các nhà thầu, trong trường hợp việc thanh toán không được thực hiện theo thời hạn và các điều kiện được liệt kê trong các đoạn (a)(6) tới (a)(8) của khoản này được đáp ứng, nếu áp dụng được. Tuy nhiên, khi ngày đáo hạn rơi vào một ngày thứ Bảy, Chủ nhật, hoặc ngày lễ hợp pháp khi cơ quan Chính phủ liên bang đang đóng cửa, và các doanh nghiệp nhà nước không dự định kinh doanh, việc thanh toán có thể được thực hiện vào ngày làm việc tiếp theo mà không bị phạt trả lãi chậm thanh toán.
Interest penalty An interest penalty shall be paid automatically by the designated payment office, without request from the Contractor, if payment is not made by the due date and the conditions listed in paragraphs (a)(6) through (a)(8) of this clause are met, if applicable. However, when the due date falls on a Saturday, Sunday, or legal holiday when Federal Government offices are closed and Government business is not expected to be conducted, payment may be made on the following business day without incurring a late payment interest penalty
TRANSLATIONS
Payment shall be made by an irrevocable, confirmed, at-sight letter of credit. The buyer shall open the letter of credit on or before 11 september on the terms agreed by the parties and annexed to this contract as appendix. Any discrepancy between the terms agreed by the parties and the letter of credit as issued shall be notified by the seller to the buyer immediately.
Việc thanh toán phải được thực hiện bằng một thư tín dụng được xác nhận trả tiền ngay không hủy ngang. Người bán phải mở thư tín dụng trước hoặc vào ngày 11 tháng 9 với những điều khoản thỏa thuận bởi các bên và được dẫn chiếu tới hợp đồng này dưới dạng phụ lục. Bất kì một sự sai khác nào giữa những điều khoản thỏa thuận bởi các bện với thư tin dụng được lập phải được người bán thông báo cho người mua ngay lập tức
Payment shall be made by an irrevocable, confirmed, at-sight letter of credit. The buyer shall open the letter of credit on or before 11 september on the terms agreed by the parties and annexed to this contract as appendix. Any discrepancy between the terms agreed by the parties and the letter of credit as issued shall be notified by the seller to the buyer immediately.
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