Under an open account arrangement, the seller ships merchandise to the consignee in the foreign country with no guarantee of payment Unless the buyer is of unquestionable integrity an open account can be risky to the seller
A trade arrangement in which goods are shipped to a foreign buyer before, and without written guarantee of, payment Because this method poses an obvious risk to the supplier, it is essential that the buyer's integrity be unquestionable
The seller/exporter supplies terms of payment to the buyer and ships the merchandise prior to receiving payment This affords little to no protection for the seller/exporter and is generally used only between parties who have a long-standing business relationship
A trade arrangement in which goods are shipped to a foreign buyer w/o the guarantee of payment Use of this payment method is based on relationships andwhen the buyer has a continuing need for the seller's product or service
A trade arrangement in which goods are shipped to a foreign buyer without guarantee of payment The obvious risk this method poses to the supplier makes it essential that the buyer's integrity be unquestionable
This is the practice of shipping goods as soon as an order is received and then invoicing your purchaser for payment within a set term This approach is common in domestic transactions and saves the exporter some expense and paperwork, but is also risky
A term of payment in which no banks are involved, Just an agreement between seller and buyer that payment will be made within a specified period of time
A trade arrangement in which goods are shipped to a foreign buyer without guarantee of payment The risk this poses to the seller makes it essential that the buyer’s integrity be unquestionable
Method of payment for goods Seller and buyer agree on payment terms; freight and necessary documents are sent to buyer The buyer generally has 60 to 90 days to reimburse the seller (with no interest charges) The seller carriers all the risk in this situation