Trade Payment Methods

The exchange of goods for money is the origin of trade. Seller and consignee have to agree on a process that covers the risks of doing business with partners in different countries with different legislations. Today there are certain different payments terms in use to fulfill the requirements of both parties (Kummer et al., 2009).

Kummer, S., O. Grün, W. Jammernegg, Grundzüge der Beschaffung, Produktion und Logistik, Pearson Studium, München, Germany, 2009.

See Cash in Advance, Open Account, On Consignment, Draft or Documentary Collection and Letter of Credit