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International trade is an unavoidable part of each country\u2019s economy. The development of Information and Communication Technologies (ICT) has resulted in converting the whole World into a Global Village, where the distance is not a barrier for trading. To succeed in today\u2019s global marketplace and win sales against foreign competitors, exporters must offer their customers attractive sales terms supported by the appropriate payment methods. Because being paid in full and on time is the ultimate goal for each export sale, a suitable payment method should be selected circumspectly to reduce the payment risk while also accommodating the needs of the buyer.<\/p>\n

For exporters, any sale is a gift until payment is been received and so they want to receive payment as soon as possible, preferably as soon as an order is placed or before the goods are sent to the importer. For importers, any payment is a donation until the goods are been received and so they want to receive the goods as soon as possible but to delay payment as long as possible.\u00a0You should learn the basics of export-import business<\/a> from industry experts and have a good mentor with you if you are a beginner in this business.<\/p>\n

There are five primary methods of payment for international transactions. During or before contract negotiations, you should consider which method in the figure is mutually desirable for you and your customer. There are 3 standard ways of payment methods in the export import trade international trade market –<\/p>\n

1. Clean Payment<\/strong>
\n\u2022 Advance Payment
\n\u2022 Open Account<\/p>\n

2. Collection of Bills<\/strong>
\n\u2022 Documents against Payment D\/P
\n\u2022 Documents against Acceptance D\/A<\/p>\n