We are once a dealer and contractor of heavy equipment. There was a time that our customer is about to close a deal with a supplier. But upon knowing that the customer will pay them by L/C, the deal failed to continue. I need to know, what are your preferred payment terms both as a buyer and a supplier of heavy equipment? komatpillar.com
What is L/C ? Large cheque? My prefered payment terms when making a purchase is " as little as possible, as cheap as possible"
HMMMMMMMMMMMMMM... Let me take a guess L/C = loose change??
I assume he may be talking about line of credit??? Komatpillar, you seem to be a new member here, welcome. I checked out your web site, it appears you operate sort of an "e-bay" online service for equipment, hope it works out for ya'. Keep in mind, though, Heavy Equipment Forums has a non-solicitation policy. Your free to post anything, just don't try advertising with your posts. And I'm curious about your name, it's very close to brand names of Komatsu and Caterpillar. These two compainies may have a legal problem with you using their "trademarked" names. Just a thought.
My prefered payment terms are free, and as close to free as possible, just like atlasrob. I'm goign to venture that l/c is loan / credit. Alot of dealers don't want to do in house financing simply because it ties up their capital. They will gladly help you get financing thru manufacturers or lending instutions but shy away from doing it themselves.
First Welcome aboard, I like use the manufacture cheep money when available, Second I arrange financing ahead of time through a private party with the lowest interest available because they usually have the least requirements for paperwork and waiting time. Next I will use my own savings as collateral for a low interest loan through one of the banks I deal with. Last I will pay cash for it if all else fails. If I do not have enough money in the bank to cover the cost of a piece of equipment I will go to work and get the money before I buy it.
L/C - Letter of Credit Hi guys! People who are used in buying heavy equipment from manufacturers or suppliers across countries knows L/C. Other payment terms are T/T - means telegraphic transfer, others of course is payment in cash. L/C is a written commitment to pay, by a buyer's or importer's bank (called the issuing bank) to the seller's or exporter's bank (called the accepting bank, negotiating bank, or paying bank). A L/C guarantees payment of a specified sum in a specified currency, provided the seller meets precisely-defined conditions and submits the prescribed documents within a fixed timeframe. --references: www.businessdictionary.com Thanks for the warm welcome!:waving www.komatpillar.com
LC's are too much of a hassel for some people... it needs much of documentation...
Letter of Credit? I always thought it was a letter of guarantee as a backup plan just in case. Didn't really see it as a method of payment :beatsme