Cash in advance is a terms of purchase, the seller can avoid credit risk or the risk of non-payment by the buyer must send payment to the seller before the goods is shipped. Wire transfers and credit cards are the most commonly used cash-in-advance options available to seller. However,payment in advance is the least attractive option for the buyer. especially, when the buyer has other vendors to choose from.
In addition, foreign buyers are often concerned that the goods may not be sent if payment is made in advance. Seller that insist on this method of doing business may losing out to competitors who may be willing to offer more attractive payment terms.