Choose the methods of payment from the drop down list.
Check
This payment method is the most secure instrument. A document is a commitment by a bank on behalf of the buyer that payment will be made to the exporter provided that the terms and conditions have been met, as verified through the presentation of all required documents. The buyer pays its bank to render this service.
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Open account
Draft (Documentary collections)
Commercial letters of credit (L/C)
Cash in advance
This method is a transaction whereby the exporter entrusts the collection of a payment to the remitting bank (exporter’s bank), which sends documents to a collecting bank (importer’s bank), along with instructions for payment. Funds are received from the importer and remitted to the exporter through the banks involved in the collection in exchange for those documents.
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Open account
Draft (Documentary collections)
Commercial letters of credit (L/C)
Cash in advance
This method is the most advantageous option to the importer in cash flow and cost terms. The goods are shipped and delivered before the payment is due. Due to the intense competition, the seller often gives an extension of credit to the buyer.
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Open account
Draft (Documentary collections)
Commercial letters of credit (L/C)
Cash in advance
With this payment method, the exporter can avoid credit risk, since payment is received prior to the transfer of ownership of the goods. Wire transfers and credit cards are available to exporters. However, requiring payment in advance is the least attractive option for the buyer, as this method creates cash flow problems.
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Open account
Draft (Documentary collections)
Commercial letters of credit (L/C)
Cash in advance
Check
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