Payment Methods Part 1

Both open accounts and payments in advance are the least secure forms of payment for exporters

• True

• False

An open account is a form of credit given by the seller to the buyer.

• True

• False

It is very unlikely that a new client will be given open account terms.

• True

• False

With payment in advance, the buyer is in a more secure position than the seller.

• True

• False

CWO means that the seller receives the customer's payment together with the order.

• True

• False

With COD, a buyer can take delivery of the goods and then pay for them.

• True

• False

... are most commonly made by bank

transfer.

• Loans

• International payments

• International accounts

The money ... from the importer's bank account

to the exporter's.

• is referenced

• is lost

• is transferred

The issuing bank is ... while the beneficiary

bank is ...

• the buyer's bank / the seller's bank

• bank giro credit / credit transfer

• Loyd's bank / John Smith

Both buyer and seller may have to pay ...

• taxes

• bank charges

• insurance