What you know about payment term in export and import.

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Accepted Answer

Payment terms in export and import

Payment terms are the agreed conditions between buyer and seller for payment of goods/services
Common payment terms include Letter of Credit, Cash in Advance, Open Account, and Documentary Collection
In export, payment terms are important to ensure payment security and minimize risk
In import, payment terms can affect cash flow and profitability
Example: FOB (Free on Board) means the seller is responsible for goods until they are loaded on the ship, while CIF (Cost, Insurance, and Freight) means the seller is responsible for goods until they reach the port of destination

Accepted Answer

Payment terms in export and import

Payment terms are the agreed conditions between buyer and seller for payment of goods/services
Common payment terms include Letter of Credit, Cash in Advance, Open Account, and Documentary Collection
In export, payment terms are important to ensure payment security and minimize risk
In import, payment terms can affect cash flow and profitability
Example: FOB (Free on Board) means the seller is responsible for goods until they are loaded on the ship, while CIF (Cost, Insurance, and Freight) means the seller is responsible for goods until they reach the port of destination

Accepted Answer

Advance payment of term in exports and imports is picked by a purchaser only when he knows the seller in details on genuineness as a seller.

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