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METHODS OF PAYMENT

Discuss METHODS OF PAYMENT within the Financial Management ( FM ) forums, part of the Resolve Your Query - Get Help and discuss Projects category; Methods of Paymen • Open account: Goods and documents are dispatched to foreign customer. Payment is made on a previously ...

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METHODS OF PAYMENT
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Abhijeet S
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abhishreshthaa
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METHODS OF PAYMENT - September 8th, 2010

Methods of Paymen

• Open account: Goods and documents are dispatched to foreign customer. Payment is made on a previously agreed date (e.g. 30/60/90/120 days from date of invoice or receipt of goods


• Letters of Credit: A bank undertakes to pay the value of the goods providing the exporting firm has met all the conditions of the letter of credit


• Cash against documents: Once goods are shipped the exporter hands the required documents to his bank that claim against the importer’s bank.
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