How are you doing? Pretty good, I imagine?
Actually not so good. That's why we made a special trip to see you.
OK, let me hear it. I'd be glad to help if I can.
Good. I want to discuss with you the mode of payment for the construction of the power plant under negotiation.
Well, I trust that your presence will hasten the settlement of payment terms.
I would like to explain to you our financial position. The manufacture of machinery and its accessories and parts will consume both time and money. It takes five years to manufacture the machinery and we will have to advance the cost for the main machines to be produced, and besides this there are large sums to be paid to our subcontractors for the manufacture of the accessories and parts.
But for an enterprise of your size, an order from us will certainly not embarrass you financially.
Well, in fact, it is beyond our financial capability.
In what way can we solve the problem?
Have you considered the possibility of a buyer's credit?
Yes. But the sum is large, it must be provided by a group of banks.
So, we propose your company apply to Hongkong and Shanghai Banking Corporation for a long-term loan. Six months before each shipment, you through Hongkong and Shanghai Banking Corporation open, in our favour, an irrevocable, dividable L / C which is to remain valid for two months.