Payment Terms Of Foreing Trade.
International Terms Of Payment.
PB - Performance Bond
This is a type of bank guarantee which is issued from the Seller to the Buyer. It guarantees that the Seller will meet the terms of the contract. Normally issued in the amount of 2 % of the total amount of the contract, a performance bond can be drawn upon by the Buyer in the event that the Seller breaks the contract and fails to provide the product which was stipulated in the contract.
POP - Proof of Product
A Proof of Product (POP) is often requested by customers or agents who believe it will give them some guarantee of the existence of the product and ability of the supplier to deliver the product. In practice many POPs are false. POP offers no proof at all, because once a POP has been drafted it is automatically out of date - the product could have been sold to another buyer and therefore no longer exists. Nevertheless, a POP is still occasionally requested as apparent proof that a seller has the product, A POP is realistically provided only when the Buyer's bank issues a Bank Confirmation Letter (BCL) to the Seller and or seller's bank via SWIFT. Then the Seller's bank can check the availability of funds in the Buyer's bank and issue a POP to the Buyer's bank within an agreed time period (e.g. 5 days). A seller will not issue a POP to buyer without a non- operative letter of credit opened.
RWA - Ready, Willing and Able
This is a document which is issued by the Buyer's bank. The bank confirms that their client has the sufficient funds in their possession and is ready, willing and able to engage in the contract.
This is an authorization from the buyer to the seller to contact the buyer's bank to verify the buyer has the financial capability to purchase the amount of goods and the method of payment agreed in the (LOI) Letter of Intent.
Society for Worldwide Interbank Financial Telecommunication - a global service which is responsible for facilitating communication between banks. Most payments are made via SWIFT.
Table 1. Terms Ranked from LEAST RISK to MOST RISK for the Seller
To read more please send Inquiry for Service or Trade Support (offer, bid, inquiry) via Comments or Registration form. You can add your own Trade Lots (bid, offer) at Trade section without registration.
Updated Trade Lots
- Full Cream Milk Powder, FAS, Sell
- Skimmed Milk Powder, FAS, Sell
- Sunflower Crude Oil, CIF, Sell
- Сорго Красное, СПТ, Куплю
- Сорго Красное, СПТ, Куплю
- Пшеница Фуражная, СПТ, Куплю
- Пшеница Продовольственная 11.5, СПТ, Куплю
- Ячмень Фуражный, СПТ, Куплю
- Пшеница Продовольственная 12.5, СПТ, Куплю
- Кукуруза Фуражная, СПТ, Куплю
- Feed Barley, FOB, Sell
- Rapeseed, Vessel, FOB, CFR, Sell
- Feed Barley, Vessel, FOB, Sell
- Sunflower, FCLs, CFR, Buy
- Flax-Oil Seeds, FLCs, CFR, Buy