Payment Terms

Introduction

Our company is committed to ensuring smooth and secure transactions for our international clients. This policy outlines the various payment terms we accept: Advanced Payment, Letter of Credit, Documents Against Payment, Cash Against Documents, and Escrow. These terms are designed to cater to different levels of trust and transaction security, providing flexibility and protection for both our business and our clients.

1. Advanced Payment

Policy:

• We require the full payment before shipping the goods.

• An invoice will be provided to the buyer detailing the amount due.

• Once payment is confirmed, goods will be shipped promptly.

Terms:

• Typically used for small orders or first-time clients.

• Payments must be made through approved bank transfers or other secure methods.

Security Measures:

• Payment confirmation must be received before dispatch.

• Detailed shipment documentation will be provided to reassure the buyer of the dispatch.

2. Letter of Credit (LC)

Policy:

• We accept irrevocable and confirmed letters of credit as a secure method of payment.

• The LC must be issued by a reputable bank and comply with the agreed terms.

Terms:

• The buyer must specify all required conditions and documents in the LC.

• All costs associated with the LC are to be borne by the buyer unless otherwise agreed.

Security Measures:

• Thorough verification of the LC terms to ensure compliance.

• Documentation will be prepared and submitted as per LC requirements.

3. Documents Against Payment (DAP)

Policy:

• We ship goods with the agreement that the buyer will make payment upon presentation of the shipping documents.

• Our bank will handle the documentation and payment process.

Terms:

• The buyer is required to make payment upon receiving the necessary shipping documents.

• Any discrepancies in the documents should be communicated immediately.

Security Measures:

• Goods are shipped only after confirming the buyer’s readiness to comply with DAP terms.

• Detailed documentation will be provided to facilitate smooth processing.

4. Cash Against Documents (CAD)

Policy:

• We operate on the basis that the buyer will make payment through their bank upon receiving the shipping documents.

• The bank will hold the documents until the buyer completes the payment.

Terms:

• Suitable for transactions with established and trusted clients.

• The buyer is responsible for ensuring timely payment to release the documents.

Security Measures:

• Shipment documents are only released upon confirmed payment.

• Continuous communication with both banks to ensure the process is handled efficiently.

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Implementation and Compliance

• All transactions must adhere to the terms outlined in this policy.

• Sales and finance teams must ensure clients are informed of and agree to the selected payment terms before finalizing any deals.

• Regular reviews of payment processes and terms to ensure they meet the evolving needs of our business and clients.

Conclusion

This policy aims to provide clear guidelines on acceptable international payment terms, ensuring secure and efficient transactions. By adhering to these terms, we strive to foster trust and reliability in our international trade operations, benefiting both our company and our clients.