It is the method of import in which the importer pays the price of goods in advance, and the exporter performs the delivery after the payment.
Since the payment is made in advance, this method will provide the importer a discount advantage and the exporter a financing advantage.
Export Cash Against Goods
The importer pays the exporter the price of goods purchased after receipt on the future date as specified in the sales contract.
This payment system offers the lowest risk and is the most attractive option for importers.
The risk assumed by exporters is minimized through securing bank guarantee for the payment.
Export Cash Against Documents
The importer may only receive the goods after shipment documents are accepted or the payment is made. The documents are delivered to the exporter’s bank.
This way, the exporter will notify that the documents will not be handed over to the importer until the payment is made.
Export Letter of Credit
Export Letter of Credit is a written guarantee by a bank (issuing bank), based on the buyer’s request and instruction, that it will make the seller a payment up to a certain amount and within a certain period upon presentment of the documents satisfying the letter of credit requirements.