1. TASK: Insert the appropriate word in the text below:
honour - full - guarantee - reassured - secure
specified - return - strict - shipping - due - on
What is a letter of credit?
A letter of credit is basically a ________ from a bank that a particular seller will receive a payment ________ from a particular buyer. The bank guarantees that the seller will receive a ________ amount of money within a specified time. In ________ for guaranteeing the payment, the bank will require that ________terms are met. It will want to receive certain documents - for example ________ confirmation - as proof.
Advantages for sellers
By asking for an appropriate letter of credit a seller is ________ that they will receive their money in ________ and ________ time. A letter of credit is one of the most ________ methods of payment for exporters as long as they meet all the terms and conditions. The risk of non-payment is transferred from the seller to the bank (or banks).
Advantages for buyers
When a buyer uses a letter of credit they get a guarantee that the seller will ________ their side of the deal and provide documentary proof of this.
2. CHECK YOUR SPEAKING
|
due |
dju |
належне |
|
full |
fʊl |
повний |
|
guarantee |
gɛrənti |
гарантія |
|
honour |
ɔnər |
виконати (договір) |
|
secure |
sɪkjʊr |
безпечний |
|
reassured |
riəʃʊrd |
запевнив |
|
return |
rətərn |
тут черга |
|
shipping |
ʃɪpɪŋ |
відвантажувальний |
|
specified |
spɛsəfajd |
вказати |
|
strict |
strɪkt |
строгий |
|
on |
an |
на |
3. SEE CORRECT ANSWER
What is a letter of credit?
A letter of credit is basically a guarantee from a bank that a particular seller will receive a payment due from a particular buyer. The bank guarantees that the seller will receive a specified amount of money within a specified time. In return for guaranteeing the payment, the bank will require that strict terms are met. It will want to receive certain documents - for example shipping confirmation - as proof.
Advantages for sellers
By asking for an appropriate letter of credit a seller is reassured that they will receive their money in full and on time. A letter of credit is one of the most secure methods of payment for exporters as long as they meet all the terms and conditions. The risk of non-payment is transferred from the seller to the bank (or banks).
Advantages for buyers
When a buyer uses a letter of credit they get a guarantee that the seller will honour their side of the deal and provide documentary proof of this.
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в підручнику “Practical Financial English”
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