Methods of Payment
|Unit 4.1-Methods of Payment|
Unit 4.1- Methods of Payment
An international manager needs to be able to describe methods and types of payment and the ways payments are communicated, both within and outside of the business organization. The application of these payment terms is critical to meeting both the business and collection goals of an organization.
The goal of this material is to introduce the methods of payment available to buyers and sellers conducting international transactions. By the end of this unit you will be able to:
- identify the methods of payment available for international transactions.
- determine when to apply different methods of payment.
- Cash in Advance (Prepayment)
- Documentary Collections
- Letters of Credit
- Open Account
- Combining Methods of Payment
Correlation: Materials from this unit correlate with NASBITE CGCP's Knowledge Statement 04/04/01: Knowledge of methods and costs of payment (e.g., letters of credit, documentary collections, cash in advance, time draft, banker's acceptance)