Trade Finance Forum › Forums › Trade Finance › Basics › What is the most reliable method of payment in international trade? › Reply To: What is the most reliable method of payment in international trade?
September 14, 2022 at 8:01 am
#428
Eddie Philips
Participant
The five basic payment methods are:
1.Collections
2.Open Account
3.Consignment
4.Cash in Advance
5.Letter of Credit (LC)
Out of the five, cash in advance is considered the safest payment method for international trade. Cash in advance eliminates the risk of non-payment and credits as the seller is paid the total amount beforehand. Bank wire transfers or credit card payments are the frequently used payment modes when using the cash-in-advance option.
Search Forums
Join our forum
Topic Views List
Forum Statistics
- Registered Users
- 78
- Forums
- 16
- Topics
- 210
- Replies
- 424
- Topic Tags
- 8