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International Payment Methods Clean Payments Advance Payment Open Account Payment Collectio
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1. Clean Payments
In clean payment method, all shipping documents, including title documents are handled directly between the trading partners. The role of banks is limited to clearing amounts as required. Clean payment method offers a relatively cheap and uncomplicated method of payment for both importers and exporters. There are basically two type of clean payments:
Advance Payment
In advance payment method the exporter is trusted to ship the goods after receiving payment from the importer.
Open Account
In open account method the importer is trusted to pay the exporter after receipt of goods. The main drawback of open account method is that exporter assumes all the risks while the importer get the advantage over the delay use of company's cash resources and is also not responsible for the risk associated with goods.
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International Payment Methods Clean Payments Advance Payment Open Account Payment Collectio
Chapter Chapter Chapter Chapter Chapter Chapter Chapter Chapter Chapter Chapter Chapter Chapter Chapter 3 - Letter Of Credit (L/c) 4 - Trade Documents 5 - Pre Shipment Trade Finance 6 - Post Shipment Finance 7 - Forfeiting Factoring 8 - Bank Guarantees 9 - Transport Risk 10 - Contract Credit Risk 11 - Country Political Risk 12 - Currency Risk 13 - Export Import (Exim) Policy 14 - Foreign Exchange Management Act (FEMA) 15 - Fedai Guidlines
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