Payment Terms Archives - Umit Gumusten

Bill of Exchange: The Key Payment Instrument in International Trade Finance

In international trade finance, sellers rely on various payment instruments to ensure secure and efficient transactions. One such instrument that plays a vital role in trade operations is the “bill of exchange.” This article aims to provide an in-depth understanding of bill

June 5, 2023

Payment Terms

Letter of Credit | Payment Terms in International Trade

L/C, short for “Letter of Credit”, is a contractual payment instrument that guarantees the importer’s payment to the exporter when the exporter ships the goods to the importer in conformity with the terms and conditions in the sales contract and presents the

July 5, 2021

Payment Terms

Open Account | Payment Terms in International Trade

Open account, also known as Cash Against Goods, is a payment method that enables the importer to pay for the goods after they are cleared at the customs of the importing country or on a fixed date after delivery, typically in 30

June 12, 2021

Payment Terms

Cash Against Documents (CAD) | Payment Terms In International Trade

CAD, short for “Cash Against Documents”, is a payment method in which banks are used for intermediation in terms of payment and transfer of the export documents from the exporter to the importer. It’s also called Documents Against Payment (DAP). In CAD,

June 11, 2021

Payment Terms

Cash in Advance | Payment Terms in International Trade

What is Cash in Advance (CIA)? Cash in advance, also called cash with order or advance payment, is exporters’ favourite payment term as it requires the importers to pay for the goods upfront, generally upon confirmation of the proforma invoice. Depending on

June 9, 2021