Financial
Supplier Financing
Credit granted directly by the foreign supplier to the importer, allowing payment for goods after receipt.
Credit granted directly by the foreign supplier to the importer, allowing payment for goods after receipt.
Supplier financing or seller credit is when the exporter ships goods and grants a payment term (30, 60, 90 days), assuming the importer's credit risk.
International Payment Terms
Agreed conditions between buyer and seller regarding when, how, and in which currency payment will be made for a foreign trade transaction.
TradeLetter of Credit
A bank payment instrument in which the issuing bank commits to paying the exporter if documentary conditions are met as established.
FinancialDocumentary Collection
Payment mechanism where the exporter's bank sends shipping documents to the importer's bank, releasing them against payment (D/P) or acceptance (D/A). Cheaper than a letter of credit.