Prepayment In Export

Export Prepayment

If exporter will have to deal with a new importer which payment method would he prefer and why? 

In cases where exporters are dealing with importer very first time, Prepayment will give the maximum degree of protection to them.

As they are dealing with new importer whose creditworthiness is also not confirmed therefore; it is the most suitable to use advance cash payment method for this deal. The importer will make payment before shipment so there is no risk to the exporter.

There are other advantages as well for using this payment method like; they can use buyer’s funds to finance their product cycle and goods can be shipped when convenient.

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