Payment Terms
1. Advance Payment
Advance Payment is a straightforward payment method where the buyer pays for the goods before shipment. This payment term is often used for smaller orders or initial business dealings. It ensures a secure transaction for the seller, allowing us to prepare and dispatch the goods promptly upon receipt of payment. Clients who choose this option can be assured of prompt processing and delivery of their orders.
2. CAD (Cash Against Documents)
Cash Against Documents (CAD) is a payment term where the buyer pays for the goods after receiving the shipping documents. These documents include the Bill of Lading, Invoice, and Certificate of Origin, among others, which are sent through the bank. The buyer can then collect the goods upon payment. This method provides a level of security for both parties, as the seller retains control over the goods until payment is made.
3. LC at Sight (Letter of Credit at Sight)
An LC at Sight is a widely accepted and secure payment term where the buyer’s bank guarantees payment to the seller upon presentation of shipping documents. Once the documents are verified and meet the terms of the Letter of Credit, payment is made to the seller immediately. This payment method ensures that the buyer receives the goods as described, and the seller is guaranteed payment upon fulfilling the shipping requirements.
4. D.A (Documents Against Acceptance)
Documents Against Acceptance (D.A) is a payment term where the seller ships the goods and forwards the documents to the buyer’s bank. The buyer accepts the documents and agrees to pay on a specified future date, allowing them to receive the goods before making payment. This term is useful for buyers who require some flexibility with payment, while still providing assurance to the seller.