In cross-border e-commerce B2B business, after signing a contract, customers usually pay (prepay) or open a letter of credit (except for collection) on time as agreed in the contract. However, there are a few cases where customers do not pay or open a letter of credit on time. This involves matters such as payment, opening and modification of letters of credit, and notification after receiving payment.
(i) Requesting payment
In cross-border e-commerce B2B business, signing a contract means that the transaction is concluded, but a transaction without payment is still risky for the seller. Therefore, after signing the contract, the salesperson should promptly urge the customer to pay. In this type of email, the salesperson should remind the customer of payment matters and inform the customer of the importance of timely payment for on-time delivery.
The example is as follows.
Dear xxx,
As required in the contract, which was settled by careful discussion of both parties, we wish to call your attention to the fact that we have got the goods ready for some time.
However, up till now, we haven’t had any news concerning your payment. Therefore, we kindly ask you to send us the payment as scheduled, so that we can execute your order No.20201 within the contract time. We hope for your kind understanding. Best regards, xxx
(II) Expediting the opening of a letter of credit
When urging the opening of a letter of credit, the salesperson should appropriately quote the relevant clauses in the contract. If the other party does not take action despite repeated urging, the salesperson can list the possible adverse consequences of the late opening of the letter of credit. For example, the factory may be unable to deliver the goods on time during the busy production season, so as to urge the customer to take action as soon as possible.
The following is an example.
Dear xxx,
With regard to your order No.CA1305 for 2500 cartons Canned Apricot Jam, we regret up to this date we have received neither the required credit nor any further information from you.
Please note that, as agreed, the terms of payment for the above order are sight Letter of Credit established within 2 weeks upon the arrival of our Sales Contract No. STE027.
We hereby request you to open an irrevocable sight Letter of Credit for the amount of USD 11750 in our favor, with which we can execute the above order according to the original schedule.
Yours truly,
Xxx