01Open account

Exporter ships off goods to the importer before receiving payment. Payment terms vary from 30 to 90 days. The exporter is exposed to high risks on non-payment, protracted payment and insolvency of the importer.

02Term collection

As an exporter, you have control of the goods until you receive a legally binding acceptance from the buyer regarding their debt to you.

03Sight collection

As an exporter, you have control of the goods until you receive payment from the importer. A bill of lading is sent through the banking system to allow the buyer to take possession of the goods.

04Unconfirmed Letter of Credit 

As an exporter, you receive an undertaking from the importer’s bank to conditionally guarantee payment. Payment is based on the condition that your documentation complies with the condition stated in the letter of credit.

05Confirmed Letter of Credit

Although similar to unconfirmed Letter of credit the difference is the LC is an irrevocable undertaking by issuing bank to honour the payment obligation in the LC. In other words if the foreign bank defaults payment, the domestic bank pays you.

06Cash in Advance

the importer pays for the goods as agreed on a date before the exporter ships the goods. As an exporter, you will receive payment while still keeping control of the goods.