A: Well, we’ve settled the question of price, quality and quantity. Now what about the terms of payment? B: OK. A: What ways of payment do you accept? B: We only accept payment by irrevocable letter of credit payable against shipping documents. A: I see. Could you make an exception and accept D/A or D/P? B: I’m afraid not. We insist on a letter of credit. A: 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 will tie up my money and increase my cost. B: Well, Miss Candy, you must beware that an irrevocable letter of credit gives the exporter the additional protection of the banker’s guarantee. We always require L/C for our exports. And the other way round, we pay by L/C for our imports. A: To meet you half way, what do you say if 50% by L/C and the balance by D/P? B: I’m very sorry, Miss Candy. But I’m afraid I can’t promise you even that. As I’ve said, we require payment by L/C. A: It seems that we have no other choice but to accept 100% L/C payment. B: You can say that. We can not make any concession in this regard. And as our usual practice, the L/C shall reach us 30 days before the date of delivery.