Choosing an Export Payment Method: Cash-in-Advance

As an exporter, you can eliminate credit risk, or the risk of non-payment from foreign buyers, with the cash-in-advance payment method. Cash-in-advance is the most secure method of payment for the exporter because the importer pays the full or a significant amount of the payment before the goods are shipped. Payment is usually made via wire transfer, credit card, or escrow service.
Exporters should consider using the cash-in-advance method in the following situations: The importer is a new customer or has a less-established purchasing history. The importer’s creditworthiness is doubtful or unverifiable. The political and commercial risk in the importer’s country is high. Or the exporter’s product is unique, not available elsewhere, or in heavy demand.
For more information: www.trade.gov/...
August 17, 2021