PLEASE HELP !
I have exported goods to the customer and presented documents on time before LC expired ( 15 dasys after shipment ) terms for payment are 60 days after presentation of documents. I dont understand the following :
1. How can I know the date for payment if I dont the date customer accepted documents ?
2. Can customers refuse payemnt if LC expired and documents were accepted after LC expired ?
I will be very thankful your any assistance !
Warm regards
Jaime
Deferred payment terms on Expired LC
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Humaliwo
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gondem
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Hi Jaime,
1- You can know the date for payment by asking the nominated bank that you did presentation. For the deferred payment LCs, the nominated bank (if no, the issuing bank) must advise the payment date to the beneficiary, after presentation.
2- You don't worry about the customer will accept the docs or not. The party which will pay you (drawee) is the nominated bank (if no, the issuing bank). The customer has no authority to refuse the payment.
The only one thing you need to get the payment is to make a 'complying presentation'.
You say that you did your presentation on time, and if your documents don't have a discrepancy, you're going to get the payment on maturity date. (Or if you need urgent finance, you can discount the deferred payment to the nominated bank)
When you do an on time presentation, LC expiry afterwards is not a concern. The process will continue untill payment.
1- You can know the date for payment by asking the nominated bank that you did presentation. For the deferred payment LCs, the nominated bank (if no, the issuing bank) must advise the payment date to the beneficiary, after presentation.
2- You don't worry about the customer will accept the docs or not. The party which will pay you (drawee) is the nominated bank (if no, the issuing bank). The customer has no authority to refuse the payment.
The only one thing you need to get the payment is to make a 'complying presentation'.
You say that you did your presentation on time, and if your documents don't have a discrepancy, you're going to get the payment on maturity date. (Or if you need urgent finance, you can discount the deferred payment to the nominated bank)
When you do an on time presentation, LC expiry afterwards is not a concern. The process will continue untill payment.
-
Humaliwo
- Posts: 3
- Joined: Wed Dec 14, 2016 6:48 pm
- First Name: jaime
- Last Name: miranda
- Organization: Cathay invest
- Filter: Two Plus Two =: 4
- Location: Hong kong
-
gondem
- Posts: 44
- Joined: Sat Aug 03, 2013 4:49 pm
- First Name: Trade
- Last Name: Finance
- Organization: self-employed
- Filter: Two Plus Two =: 4
- Location: Türkiye
Jaime,
You know that banks have 5 days to examine the documents. If docs are complying, you're going to get the payment date for the deferred credits. If bank informs you about the discrepancies, you have an alternative way to avoid from the customer approvement;
You can take back the discrepant document(s) from the bank, and amend them in a proper way, and re-present the document(s) to the bank within the time of presentation period stipulated in the LC.
If there is no sufficient time to amend or re-issue the document(s), you need a waiver (approvement) from the customer.
best regards.
You know that banks have 5 days to examine the documents. If docs are complying, you're going to get the payment date for the deferred credits. If bank informs you about the discrepancies, you have an alternative way to avoid from the customer approvement;
You can take back the discrepant document(s) from the bank, and amend them in a proper way, and re-present the document(s) to the bank within the time of presentation period stipulated in the LC.
If there is no sufficient time to amend or re-issue the document(s), you need a waiver (approvement) from the customer.
best regards.