26 Jan Five Common Payment Methods For International Trade
Today’s global market has intense competition, and it is not easy to impress customers. You need to offer them an elevating experience along with easy payment methods. Exporters must choose ideal payment methods to get the whole amount in one go. They need to cater to the customer’s needs and no risk to their payments. Here are some secure and common payment methods for exporters in international trade:
1. DOCUMENTARY COLLECTIONS
In a documentary collection, the exporter will receive payment from the importer through the bank. The seller will submit documentation that carries all the essential details of the payment and product. If you want to gain knowledge about the basics of trades, learning from the International Trade Documentation and practices course will be helpful.
2. CASH IN ADVANCE
Cash in advance happens to be a good choice for the exporters. It gives them a chance to receive the payment before transferring products to distant locations. Both wire transfers and credit cards are commonly used for international trade. It doesn’t offer any risk for the seller but will threaten the buyer. If traders are unknown, the buyer is at risk and will think whether the products will reach on time or not.
3. OPEN ACCOUNT
The transaction through an open account is more like a sale. In this process, the goods are shipped much before the payment comes out. The time for receiving payment is around 60 to 90 days. When it comes to open account payments, both parties need to have a trust level. When importers learn all the trading rules through Trade Documentation and practices course, it will prevent losses.
4. LETTERS OF CREDIT
Letters of credit are popularly known as credit letters. It happens to be a secure method for traders when it comes to international trade. It contains a comprehensive letter from the bank that states the seller’s payment amount. In this way, the exporter will be satisfied with the information he will get from the bank. With the letters of credit, buyers don’t need to pay for the products till it reaches them.
Consignment is another safe and secure payment method for international trade. The exporter will receive the payment only when goods are sold in the international market. This consignment document is more like a contract or agreement. It is the foreign distributor who receives and manages the sales of the goods on behalf of the exporter.
International trade is all about the transportation of goods to distant areas. The exporters and importers need to have proper arrangements before the trade begins. They must understand all types of trade documents and ways to prevent damage to their products. It is also essential to learn about easy and secure payment methods for international trade. The international trade documentation and practices course will help you understand the core of international trade. You need to attend the workshop for one day. Even the price is affordable as you need to pay only SGD 288.