Well , we've settled the question of price , quality and quantity . Now what about the terms of payment ?   We only accept payment by irrevocable letter of credit payable against shipping documents .   I see . Could you make an exception and accept D / A or D / P ?   I'm afraid not . We insist on a letter of credit .   To tell you the truth , a letter of credit would increase the cost of my import . When I open a letter of credit with a bank , I have to pay a deposit . That'll tie up my money and increase my cost .   Consult your bank and see if they will reduce the required deposit to a minimum .   Still , there will be bank charges in connection with the credit . It would help me greatly if you would accept D / A or D / P . You can draw on me just as if there were a letter of credit . It makes no great difference to you , but it does to me .   Well , Mrs . Wang , you must be aware that an irrevocable letter of cred it gives the exporter the additional protection of the bank er's guarantee . We always require L / C for our exports . And the other way round , we pay by L / C for our imports .   To meet you half way , what do you say if 50 % by L / C and the balance by D / P ?   I'm very sorry , Mrs . Wang . But I'm afraid I can't promise you even that . As I've said , we require payment by L / C . 