Part 1: Risk assessment in international trade
Payment methods
Risks of payment methods
There are four basic payment methods
used in international trade:
payment in advance,
letter of credit,
collection and
open account,
Some payment methods are riskier
than others.
Assess all options.
Risk level
for exporters Payment
methodP Risk level for
importers
1 Payment in advance 4
2 Letters of credit 3
3 Collections 2
4 Open account 1
Level 1 = Without risk
Level 4 = The highest risk
Export platforms | Module 5: Getting paid
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