M5 P1_EN M5 P1_EN | Page 17

Part 1: Risk assessment in international trade Payment methods Documentary collection  Advantages and risks exporter’s viewpoint: from the Advantages Risks • The exporter ships at his convenience. • Non-payment risk. • The ownership of the documents is controlled by the banking system. • Non-acceptance of documents. • Storage time limits. • Costs of storage and re-shipment. • Simpler and cheaper than letters of credit. The risks are medium / low for the exporter Export platforms | Module 5: Getting paid 20/11/2019 | 17