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FrançaisPayment terms used in bank collections that require the drawee to pay before receiving certain documents. Typically, the drawer will send these documents to the drawee´s bank with instructions that it secure payment before releasing them. Also called payment at…
Read MoreCash in advance (CAI)
Payment term in which the exporter receives payment before shipment of the goods. This minimizes the exporter´s risk and financial costs, since there is no collection risk and no interest cost or receivables. However, importers rarely agree to these terms,…
Read MoreCash on delivery (COD)
A payment term under which payment for the shipped goods is to be made to the carrier at time of delivery. This practice is not recommended in foreign trade because of differing methods of operation employed by carriers in different…
Read MoreCash with order (CWO)
A payment term whereby the buyer remits the money at the time the order is placed. Under this term, the buyer is actually extending credit to the seller. Also called payment in advance.
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