International Business
Correspondence 8
SGU

Payment letter

Common methods of payment
Promissory

Bank
draft

Bank
transfer

note

Post
office
giro

B/E
payment

C.O.D

cheque
L/C

Credit
transfer

Methods of Payment
1. Cash-in-advance
2. Letters of credit: L/C

+ Irrevocable and revocable letters of credit
+ Confirmed and unconfirmed letters of credit
+ Transferable letters of credit: Thư tín dụng có thể

chuyển nhượng

+ Standby letters of credit: Thư tín dụng dự phòng

+ Revolving letters of credit: Thư tín dụng quay vòng
+ Back-to-back letters of credit: Thư tín dụng giáp lưng

3. Documentary collections

Remitting bank: Ngân hàng đang chuyển tiền

4. Open account
5. Consignment: lô hàng

Invoices and Statements
• One of the main documents used in trading.
• Both requests for payment and records of
transactions (what has been bought or sold,
the terms of the sale, and details of the
transaction).

A pro forma invoice (pp 77)
• Etymology: pro forma (Latin: as a matter of form)
• A term applied to practices or documents that are
done as a pure formality
• a 'Pro forma Invoice' is a Confirmed Purchase
Order where buyer and supplier agree on the
Product Detail and cost to be shipped to buyer.
• Definition: invoice sent in advance of the goods
ordered
(hóa đơn tạm / thông báo)

Functions
If the customer has to pre-pay

Pro-forma
invoice

If the customer wants to make sure a
quotation will not be changed
If goods are sent on approval, on sale or
return, or on consignment to an agent
who will sell them on behalf of the
principal
As a customs document

Details of Proforma Invoice
Study the proforma invoices in your handbook and list the
main features of a typical proforma invoice.

(1) descriptions of the goods （ type, specification ）
(2) unit price
(3) quantity
(4) terms of payment
(5) time of shipment
(6) total amount
(7) shipper, cargo insurance and transport charges
(8) name of buyer and address

Statements of account

• Các báo cáo bản kê
• sent to the customer, giving details of all the
transactions between the buyer and seller for that
period.
• Includes the BALANCE on the account, which is brought
forward from the previous period and listed as
ACCOUNT RENDERED
BALANCE ?
 Difference between the totals of money coming into and going
out of a bank account.
(quyết toán)
ACCOUNT RENDERED ?
 Unpaid amount recorded in a statement of account, details of
which were in a previous statement
(số dư nợ tiếp theo)

debit note /debt nəυt/ noun a note showing that a
customer owes money: phiếu ghi nợ
credit note /kredt nəυt/ noun a note showing that
money is owed to a customer: phiếu tín dụng

Bank Name: The name of your institution and its location.
Personal Information: Your name and address.
Account Information: The type of account and the account
number.
Statement Period: The dates that the statement covers.
Activity Summary: An overview of your credits and debits as
well as the balance remaining at the end of the period.
Transaction Summary: A detailed listing of your credits and
debits. Note that the dates for the checks you have written
are those on which the bank processed them, not when you

Statements of account
Hối phiếu

Chuyển nhượng

= inland bill (hối phiếu)
SIGHT DRAFT =
DEMAND DRAFT:
hối phiếu trả ngay
TERM DRAFT
: hối phiếu kỳ hạn

Statements of account
Current account = checking
account: an account in an bank
from which the customer can
withdraw money when he or
she wants. Current accounts do
not always pay interest.
(tài khoản vãng lai)

SAVINGS ACCOUNT: an account where you put
money in regularly and which pays interest, often
at a higher rate than a deposit account (tk tiết
kiệm)
giro : a method used by clearing banks
to transfer money rapidly from one
account to another
Chuyển nhượng tín dụng
Tín dụng thư

Statements of account
Lĩnh hóa giao ngân

Giấy hẹn trả tiền

Bank draft

Bank transfer

B/E

Cheque

Credit transfer

L/C
The documents requested in a Letter of Credit
are the following:
•Commercial invoice
•Transport document such as a Bill of lading or
Airway bill,
•Insurance document;
•Inspection Certificate
•Certificate of Origin

• Honor: bản cam kết
• Endorsement: xác nhận

Promissory note

Principles of Payment Letters
Request for payment
+ First request
+ Second request
+ Third request (final demand)
Advice for payment
Delayed payment
+ Grand the request
+ Refuse the request
+ Suggest an alternative solution or a compromise
Acknowledgement of payment

Principles of Payment Letter Writing

Outstanding amount: Số tiền còn nợ
Duty-paid: nộp thuế
Cash on delivery: Thanh toán khi giao hàng
Trade-discount: chiết khấu thương mại
Payable on delivery: Phải trả khi giao hàng
Cheque enclosed: Séc kèm theo
Collection of outstanding debt: Thu nợ tồn đọng

Good luck!