Please enable JavaScript.
Coggle requires JavaScript to display documents.
Term of payment (Less secure (CIA (cash in adv.) CBS (cash bf shipment) :
…
Term of payment
Less secure
CIA (cash in adv.) CBS (cash bf shipment) :
- order not in process until payment
- advantageous for exporter
- forestall possible collection of prod. = immediate use of cash
International wire : half of sum in advance, balance being paid 30 days from date of shipment
CWO (cash with order), exntends credit to the seller, runnign risk the goods not being dispatched
COP / POD (price on delivery) EXW
when exp. is unfamiliar with buyer's creditworthiness = at his factory
=/ POI (payment on invoice) = due as soons as the invoiceis recieved)
interest charge added to the amount
Credit
Delivery first, then payment
opposed to cash account
invoice will precise the term of payment (due on fixed date) MFI = month following invoice
Wire transfer & check
Order by drawee to bank to withdraw the due sum and transfer yo the payee
Use of IBAN code + possible to give secure msg by SWIFT to seller/recieving bank
IPI EU doc, used fist within the EU. Countains all the information of the transaction - speed up transaction, eliminate errors
-
-
-
- Proposed/demanded by seller
- Negociate the best suited term and payments
- Included in contract of sales
Of particular interest is :
- creditworthiness of buyer
- eco. cond. of importer's country,play a role with interest rates & CAF (cur. adj. fact.)
CAF : only :ship:
involves adjustement, changes, modif to cost incurred in the export process to offset carrier's loses or trader's gains resulting from fluctuations. = freight surcharge
:warning:If buyer changes his mind to pay, no legally binding bank promis to pay - incurve the risk to have to return by its own the dispatched goods :warning: