Business owners have to think globally in order to be competitive in business. In today’s world, it is essential to think about safe and favourable payment methods while selling products internationally. In my personal opinion, you have to ensure that it is favourable for both the seller and the buyer. The risk arises in international trade because an importer’s natural mindset is to receive goods before payment, and an exporter is to get paid before dispatching the goods. This is the reason why a reliable payment mode is essential. The five types of payment methods are:
1. Letter of Credit
2. Open Account Terms
3. Cash in Advance
4. Consignment and Trade Finance
5. Documentary Collection
