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.
Import 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.
Import Letter of Credit
Import 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 submitting of the documents satisfying the letter of credit requirements.
Import Acceptance/Aval Credit
Acceptance Credits, which allows for dated payment of import price through the bill of exchange issued, and Aval Credits, which secure the payment under the bank guarantee, provide flexibility and reliability in international trade transactions.
Under this method of payment, payments are made on bill of exchange maturity depending on whether or not it is letter of credit, cash against documents, and cash against goods method.