chapter  11
30 Pages

Methods of Payment

The rapid growth and expansion in global trade cannot be sustained without efficient and timely payment arrangements. Nonpayment or delays in payment for imports could tie up limited credit facilities and create liquidity problems for many exporting companies. Advance payments by overseas customers would similarly tie up buyers’ limited resources and do not necessarily guarantee delivery of agreed merchandise. The ideal pay­ ment method is one that protects the contending interests of both sellers and buyers.