Glossary

A payment made by the importer to the exporter in advance of the shipment or delivery of the exported goods.

A negotiable instrument that serves as a written order by the exporter to the importer, requiring the importer to pay a specific amount on a specified date.

A payment method where the exporter requires the importer to pay for the goods in full before shipment.

A payment method where the exporter retains ownership of the goods until they are sold by the importer, who then pays the exporter based on the sales proceeds.

A payment method where the exporter’s bank collects payment from the importer’s bank on behalf of the exporter, based on the presentation of specified documents.

A type of documentary collection where the exporter’s bank releases the documents to the importer upon acceptance of a time draft, with payment due at a later specified date.

A type of documentary collection where the exporter’s bank releases the documents to the importer only upon receipt of payment.

A payment arrangement where a third-party holds the funds on behalf of the importer and releases them to the exporter upon fulfillment of specified conditions or delivery of the goods.

A financial instrument issued by a bank on behalf of the importer, guaranteeing payment to the exporter once specified conditions are met.

A payment method where the exporter extends credit to the importer, allowing the importer to make payment at a later agreed-upon date after the goods have been delivered.