Q WHAT ARE THE PAYMENT TERMS?
Payment terms will be clearly spelled out in the original offer or SCO. Payment terms are set by the supplier. We have suppliers who can offer some slightly different terms and we try to match your needs with those suppliers. In general, suppliers will only accept an Irrevocable Documentary Letter of credit (DLC) 100% payable at sight of loading documents.
DLC at sight transferable, divisible and revolving issued by or confirmed by a major western bank agreeable to us-the seller. Sometimes, we may agree to some form of cash payments or Bank guarantees (called Stand-by L/C- in Europe -LC in the US. DLC is a payment method LC -Stand by LC, is a guarantee not a method of payment. It can guarantee cash payment or some other form.)
Some of our suppliers will require a RWA, or BLC (Ready, Willing and Able document from the buyer’s bank, similar to BCL- Bank Comfort Letter) from the buyer.