[00:02.06]Payment in foreign trade is often complicated.
[00:06.22]It plays an important role in the process of trade.
[00:10.37]All activities mean nothing without gurantee of payment.
[00:15.12]The method of payment to be used is matter arreanged by the parties concerned.
[00:20.30]Various ways of payment are un use in the import and expore trade.
[00:24.50]Among them,payment by the letter of credit is most essentially a method of collecting money on the shipping documents.
[00:33.62]It can ensure that the exporter can get paid as soon as he has fulfilled his part of the sales contract and has shipped the goods even if the buyer has not received the oggds ,
[00:46.76]and insure that the importer is assured of title to the goods before he pays for them.
[00:52.95]Otherwise,the exporter is unwilling to deliver the goods without receiving payment,while the importer is reluctant to pay his money without actually controlling the goods.
[01:02.93]The problem of both the exporter and the importer is solved through the intervention of the third party-- a bank.