[speaker001:] Have you got any specific proposal about the terms of payment?
[speaker002:] I wonder if we can make payment for this order by documentary collection.
[speaker001:] I'm sorry to say the only term of payment we can accept is 100 % irrevocable letter of credit payable against shipping documents.
[speaker002:] But our order this time is very large. To open an L C for such a large amount at a bank is costly. Can you be a bit more flexible and bend the rule a little?
[speaker001:] I'm afraid not. We insist on a letter of credit, because as seller, we also have the problem of funds being tied up.
[speaker002:] To be frank, 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 will tie up my money and add to my cost.
[speaker001:] Consult your bank and see if they will reduce the required deposit to a minimum.