rainonmay
floating around
What are the advantages and disadvantages of each methods of payment?? All i kno it is in terms of risk....
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Methods of payments (1 Viewer)
- Thread starter rainonmay
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ToO LaZy ^*
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well what are the methods of payment?
dark`secrets
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- advance payment (safest method for exporters as they receive payment before shipping the goods)
- open account- high risk for exporters as they ship the goods first then bill the importer.
documentary collection-
-letter of credit- low risk for exporters
are these the methods of payment? :s
- open account- high risk for exporters as they ship the goods first then bill the importer.
documentary collection-
-letter of credit- low risk for exporters
are these the methods of payment? :s
Seraph
Now You've done it.......
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Starting from Least Risk for an Exporter to Most Risk
1. Prepayment - explained above
2. Letter of Credit - lyk a document that means the importers bank MUST send the money to the exporter and all the exporter has to do is provide proof of shipment.
3.Clean payment - this is wierd as, something like the importer will send the moeny but the exporter cannot actually recieve the money until they send the goods (LIKE WTF, CLARITY ON THIS)
4. Bill of Exchange - i dont understand this too well , but a represntative from the exporter's bank will go to the importer's country and will not let the exporter send the goods to the importer unless the importer meets all conditions in the partiuclar bill (documentation)
5. Open Credit - explained above
1. Prepayment - explained above
2. Letter of Credit - lyk a document that means the importers bank MUST send the money to the exporter and all the exporter has to do is provide proof of shipment.
3.Clean payment - this is wierd as, something like the importer will send the moeny but the exporter cannot actually recieve the money until they send the goods (LIKE WTF, CLARITY ON THIS)
4. Bill of Exchange - i dont understand this too well , but a represntative from the exporter's bank will go to the importer's country and will not let the exporter send the goods to the importer unless the importer meets all conditions in the partiuclar bill (documentation)
5. Open Credit - explained above