PREFERRED PAYMENT METHOD


 

International trade presents a spectrum of risk, always causing uncertainty over the period of making shipments and payments. Phamexco is offering global customers attractive sales terms and conditions supported by the appropriate payment methods. Being along with flexible delivery agreements as Incoterm 2010, here are three primary methods of payment Phamexco is applying. The method of payment will be negotiated and chosen carefully to minimize the risk of transactions mutually for Phamexco and customers.  
 

► CASH IN ADVANCE

Cash-in-Advance (or Prepayment) occurs when the customer sends payment in the agreed currency and through agreed method to Phamexco before the product is manufactured and/or shipped. Upon receipt of payment, Phamexco then ships the goods and all the necessary shipping and commercial documents directly to the customer.
 

► LETTER OF CREDIT
Letters of credit (L/C) is one of the most secure instruments available to international traders. L/C is a commitment by a bank on behalf of the buyer that payment will be made to Phamexco, provided that the terms and conditions stated in the L/C must been met, as verified through the presentation of all required documents which will be sent from Phamexco to the buyer's bank. The buyer establishes credit and pays their bank to render this service. The L/C also protects the buyer since no payment obligation arises until the goods have been shipped as promised by Phamexco. Letters of Credit are governed by the rule of Uniform Customs and Practices for Documentary Credits (UCP 600), promulgated by International Chamber of Commerce.
 
► DOCUMENTARY COLLECTION
A documentary collection (D/C) is a transaction whereby Phamexco entrusts the collection of the payment for a sale to our bank (remitting bank), which sends the documents that the buyer needs to the importer’s bank (collecting bank), with instructions to release the documents to the buyer for payment. Funds are received from the importer and remitted to Phamexco through the banks involved in the collection in exchange for required documents. D/Cs involve using a draft that requires the importer to pay the face amount either at sight (document against payment) or on a specified date (document against acceptance).


We use testing and inspecting services offered by most trusted global firm