To the International trade, one of the most important tasks to succeed in today’s global marketplace is determine the terms of payment or payment method. Seller should offer customers attractive sales terms supported by appropriate payment methods, because getting paid in full and on time is the ultimate goal for each export sale, an appropriate payment method must be chosen carefully to minimize the payment risk while also accommodating the needs of the buyer.
To understanding the various terms of payment is essential for selecting one best suited for your company, the advantages, disadvantages and risks vary greatly depend on you are the buyer or the seller.