Incoterms & Payment Procedures
Incoterms® 2020
Any Mode(s) of Transport
- EXW – Ex Works
- FCA – Free Carrier
- CPT – Carriage Paid To
- CIP – Carriage & Insurance Paid To
- DAP – Delivered at Place
- DPU – Delivered at Place Unloaded
- DDP – Delivered Duty Paid
Sea & Inland Waterway Transport
- FAS – Free Alongside Ship
- FOB – Free On Board
- CFR – Cost & Freight
- CIF – Cost Insurance & Freight
How a Letter Of Credit Work
International Payment Methods
💰 Advance Payment
Buyer pays before shipment. Lowest risk for exporter but highest for importer.
📑 Open Account
Goods shipped first and payment made later. Best for trusted business partners.
🏦 Documentary Collection
Banks handle shipping documents in exchange for payment.
🚢 Letter of Credit (LC)
Bank guarantees payment after successful document verification.
📦 Consignment
Exporter receives payment only after importer sells the goods.
- Business Relationship
- Country Risk
- Buyer's Creditworthiness
- Shipment Value
- Market Conditions