Methods of Payments in International Trade
Three Payment methods
There are three payment methods in TF, namely Clean payments, DC and LC. Take a look at them.
A deeper look at the Clean Payments
Open account: goods in advance
Goods in Advance and Open Account - A detailed view
Basic contracting happens between the two parties in trade. Find how money moves in this method of payment.
Relative Advantages and Disadvantages of Payments
Payment methods have advantages and disadvantages. Let us look at some of them.
LC - The overall flow
Letter of Credit fills in when both the parties cannot use the Clean payment methods
Documents in an LC
Documents evidencing the transaction are key in LC
Relative advantages and Disadvantages of the LC
Get to know the relative advantages and disadvantages of Letters of Credit
The role of Banks
Banks are involved in all stages of trade. Understand the role of Banks in each stage.