L/C stands for letter of credit (also denoted as LC). Letter of credit is a document normally issued by the banks or financial institution. It is one of the trusted tools of transaction and used mainly by the exporters.
Letter of credit holds the promise of paying the bearer the amount, declared in the L/C, when the bearer presents the letter to the bank.
Posted: Thu Jul 12, 2007 6:35 am Post subject: Tried to explain DOA
My friend, the Documents Against Acceptance refer to those documents which are clubbed with the exporter's bill. This is meant for procuring goods, which are to be conveyed to the importer once he has agreed to pay at a later date. This is of significant importance to a deferred payment procedure. Under such a system, the payment has to be calculated as per the clauses mentioned in the Letter Of Credit as explained by Juanita. Thanks, Fatman
Posted: Thu Jul 12, 2007 8:19 am Post subject: against payment
Hi, Once the importer involved in exchange of goods has agreed to reimburse at a future date, then the documents annexed with the exporter's bill are being passed on to the importer.
These are the documents against payment & are related to the sight draft. The sight draft is a document where the payment is mentioned. All the best, Evan
O/A or OA stands for open account arrangement. In open account arrangement the two parties involved in the transaction are the buyer and the seller. The seller presents the document directly to the buyer instead of presenting it to the bank. The control of the transaction, therefore, lies completely with the buyer. The trust is the most important factor in O/A. Normally, parties having a long term business relationship conduct business through open account arrangement.
Thanks
Cindy _________________ Register Now to have your Insurance queries solved.
Posted: Thu Jul 12, 2007 9:15 am Post subject: ask for a card no.
OA ?
Well yes, this is also a known payment method. If you are gonna try it for the account type charges then you may ask the clerks for a credit card number and assign it with the registration record. This will be a safer process for you while dealing with a large payment requirement. Hope everything goes well with you now!
Tampabay _________________ Register Now to have your Insurance queries solved.
Posted: Sun Jul 29, 2007 5:17 am Post subject: d/a payment
sir,
good day.
a buyer from malaysia, who is quiet new to me is asking to send goods against delivery against acceptance.
is it safe?
pl.advise sir.
my e.mail:
mohanraop[at]yahoo.com
system edited: email deactivated for privacy reasons _________________ Register Now to have your Insurance queries solved.
Posted: Tue Jul 31, 2007 11:27 am Post subject: D/A
hey I believe D/A is quite safe if you are able to get the payment-based-on-the-clauses-mentioned-in-the-LOC verified properly.
RobertaD _________________ Register Now to have your Insurance queries solved.
Posted: Mon Mar 24, 2008 12:45 pm Post subject: Useful
L/C is safer than D/P or D/A , because L/C is bank credit not commercial credit . _________________ Register Now to have your Insurance queries solved.
Posted: Wed Sep 03, 2008 10:17 am Post subject: D/A,D/P
Documents Against Payment (D/P) and Documents Against Acceptance (D/A) are two lesser-known transaction types that represent risk levels lower than an O/A, but greater than an L/C: . Both rely on an instrument widely used in international trade called a bill of exchange or draft.
The D/P transaction utilizes a sight draft. Payment is on demand. After the goods are shipped, the exporter sends the sight draft to the clearing bank, along with documents necessary for the importer/buyer to obtain the goods from customs. The buyer has to settle the payment with the bank before the documents are released and he can take delivery of the goods. If the buyer fails or refuses to pay, the exporter has the right to recover the goods and resell them.
The D/A transaction utilizes a term or time draft. In this case, the documents required to take possession of the goods are released by the clearing bank only after the buyer accepts a time draft drawn upon him. In essence, this is a deferred payment or credit arrangement. The buyer's assent is referred to as a trade acceptance. _________________ Register Now to have your Insurance queries solved.
Posted: Sat Sep 06, 2008 1:45 am Post subject: More Information on how L/C works
This will be my first overseas order of goods and I have been offer to pay by L/C. Can someone give me detailed information on how this works. I don't have a clue of what I need to do. Is it a safe way for a buyer to pay a company I don't know alot about? And if the goods are not what they are supposed to be can my money be gotten back? Please Help Thank you Sandy _________________ Register Now to have your Insurance queries solved.
