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Do you have any arrangements in the field of export goods for the issues of receiving money and necessary guarantees and the payment method?
- Decide on the payment method of receiving the necessary funds and guarantees
The best payment option for you at any time depends on a number of factors:
- How much do you trust your buyer?
- Is this the first deal?
- How ready are you to take the risk?
- Your buyer is willing to take any risk.
- How big is the deal?
To receive the money, you must consider the amount of your risk and suggest the appropriate payment method based on it.
Determine the appropriate payment method for your product
Terms of payment – from which you can choose, are:
- Advance payment: cash in advance – according to which, the buyer paid part or all of it before sending, pays
- Receipt of letters– letter of credit or draft – involves the delivery of goods or services by you, but in such a way that control over them remains with you, as long as you pay the amount and the legal obligation to pay in the future from your foreign buyer, Receive
- Anopen account, which delivers certain credit terms to your buyer upon delivery of the goods or services, along with an invoice on which the payment request is posted on a specific date after delivery
. It is the most risky method in the field of export for the exporter and the open account method is the most risky method for exporters. The open account method is usually used for businesses that know each other well and have strategic.
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