Cash Payment / Advance Payment / Prepayment / Cash Before Delivery
In this form of payment, the importer pays the cost of the goods to the exporter before the goods are shipped. The exporter does not assume any risk; All risk in this form of payment is on the importer due to the risks such as delay in the shipment, the goods not being suitable for the order.
Cash Against Goods
In this form of payment, the importer pays the cost of the goods to the exporter after receiving the goods. After the exporter has shipped the goods on behalf of the buyer, he sends the documents representing the goods to the importer either directly or through the bank on the condition of free delivery. It is the payment method in which the exporter assumes the most risk.