Export Guide

Financing and Payments

January 15, 2025

Understanding trade finance and payments helps exporters turn opportunities into sales and get paid for those sales in full and on time.

There are four methods of payment in international trade:

  • Open account
  • Documentary collection
  • Letters of credit
  • Cash-in-advance

Each payment method contains varying levels of risk for the importer and exporter. An appropriate payment method must be chosen carefully to minimize the exporter's payment risk while accommodating the importer's needs.