[speaker001:] Well, we've settled the question of price, quality and quantity. Now what about the terms of payment?
[speaker002:] We only accept payment by irrevocable letter of credit payable against shipping documents.
[speaker001:] I see. Could you make an exception and accept D A or D P?
[speaker002:] I'm afraid not. We insist on a letter of credit.
[speaker001:] To tell you the truth, a letter of credit would increase the cost of my import. When I open a letter of credit with a bank, I have to pay a deposit. That'll tie up my money and increase my cost.
[speaker002:] Consult your bank and see if they will reduce the required deposit to a minimum.
[speaker001:] Still, there will be bank charges in connection with the credit. It would help me greatly if you would accept D A or D P. You can draw on me just as if there were a letter of credit. It makes no great difference to you, but it does to me.
[speaker002:] Well, Mrs. Wang, you must be aware that an irrevocable letter of cred it gives the exporter the additional protection of the bank er's guarantee. We always require L C for our exports. And the other way round C for our imports.
[speaker001:] To meet you half way, what do you say if 50 % by L C and the balance by D P?
[speaker002:] I'm very sorry, Mrs. Wang. But I'm afraid I can't promise you even that. As I've said, we require payment by L C.