Тема: Платежно-расчетные документы

Settlement and payment terms and documents.

There are two major types of payment accepted in business transactions. They are payment in cash and payment on credit. The most popular term of payment in cash is by letter of credit. (L/C). A letter of credit is a letter from one bank to another bank, by which a third party, usually customer is able to obtain money. There are some types of letters of credit: circular L/C, confirmed L/C, direct L/C, documentary L/C, irrevocable L/C, limited L/C, traveler’s L/C, unconfirmed L/C, etc.

Thus, a confirmed irrevocable letter of credit guarantees the payment for goods being exported. All letters of credit can be valid within a stipulated period of time. A letter of credit is safe in business transactions as it provides for the payment to be effected only against shipping documents: Invoice, original Certificate of Quality, Certificate of Origin, Insurance Policy.

The most popular terms of payment on credit are:

payment by bills of exchange (drafts). The draft is then returned to the seller who holds it until maturity.

This method ofpayment involves risk to the exporter or his bank as it may happen that a draft is not honouredwhen it is due. The shipper has full protection when drafts are presented against L/C, when it is confirmed and irrevocable, the payment is guaranteed,

payment by promissory notes;

in advance, this method of payment can be combined with other forms of payment in large-scale contracts or in deals with unknown buyers;

on an open account, this method of payment is an usual practice between a seller and a regular customer, whom a seller absolutely trusts, the contracting parties agree on regular payments within a stipulated period of time.

TASK 2. Find in the text

- Безналичный расчет

- платеж в кредит

- осуществлять платеж

- плательщик

- вексель(тратта)

- платить аванс

- подтвержденный безотзывный вексель

- срок долгового обязательства

- передача денежных средств со счета на счет

- оплата простыми векселями.

TASK 3. Find in the text the answers to the questions

W hat are the two major types of payment accepted in business transactions?

What is a letter of credit?

Name the most popular terms of payment on credit?

What method of payment involves risk? And why?

When has the shipper full protection?

Which payment is a usual practice between a seller and regular customer?

TASK 4. Match each word or expression on the left with the correct definition on the right.

1. payment

2. letter of credit

3. cable transfer

4. cheque

a) sum of money (to be) paid

b) a written order to a bank given and signed by someone who has money deposited there

c) a quick way of sending money to smb abroad

d) a letter from one bank to another bank

Task 5. Retell the text.

ТЕМА: A bill of exchange (B/E)

A bill of exchange (B/E) is a signed document, like a cheque, that orders a person or an organization, such as a bank, to pay a fixed sum of money on demand or on a certain date to the person specified. In other words a bill of exchange is an order to pay. It is a document that can be exchanged for goods or money. The popular name for bills of exchange is drafts. There are various types of bills of exchange. They may be sight drafts and term drafts.

A sight draft is a bill which is paid immediately (on presentation) as it is presented for payment. A sight draft does not require acceptance.

A bill to be paid at a later date is called a term draft. There are 30 day, 60-, 90-and 120 day drafts. A term draft must be necessary accepted.

Promissory note is a document in which a person or an organization, such as a bank, promises (on behalf of the buyer) to pay fixed sum of money on demand or by a certain date to the person specified (the seller). The interest of debentures is paid every six months.

sight drafts –тратта на предъявителя

term drafts -тратта с оплатой в конце обусловленного периода

Promissory note-простой вексель

TASK 1. Find in the text the English equivalents.

- оплачивается по требованию

- получать в банке

- переводной вексель

- обменять на товар

- счет, оплаченный по предъявлению

- к определенному сроку

- долговое обязательство

TASK 2. Answer the questions.