Invoicing and Payment Methods

Who issues an invoice?

• Buyer

• Seller

• Bank

• Government

What information is included in an invoice?

• Parties involved, goods provided, payment terms

• Buyer's credit standing, country of operation, trust level

• Shipping documents, letter of credit, bank transfer

• Payment options, credit options, down payment

What is the difference between a commercial invoice and a pro forma invoice?

• Commercial invoice is sent before goods are shipped, pro forma invoice is a legal document

• Commercial invoice is a legal document, pro forma invoice is sent before goods are shipped

• Commercial invoice demands payment, pro forma invoice is not a legal document

• Commercial invoice is issued by the buyer, pro forma invoice is issued by the seller

How are invoices usually sent today?

• Via post

• As email attachments or digitally through web-based software

• Through a letter of credit

• With a down payment

What factors should a seller consider when choosing payment terms?

• Buyer's credit standing, country of operation, trust level

• Parties involved, goods provided, payment terms

• Shipping documents, letter of credit, bank transfer

• Payment options, credit options, down payment

What is the most secure payment term for the seller?

• Payment in advance

• Open account

• Down payment

• Bank transfer

What is the fastest and most common method of payment?

• Bank transfer

• Cash against documents

• Letter of credit

• Bill of Exchange

What is a letter of credit?

• A legal document that orders the buyer's bank to pay the seller's bank

• A method of payment that releases payment after the examination of shipping documents

• A secure payment option for both buyer and seller

• A costly method of payment

What is a Bill of Exchange?

• A legal document that orders the buyer's bank to pay the seller's bank

• A method of payment that releases payment after the examination of shipping documents

• A secure payment option for both buyer and seller

• A costly method of payment

What is the target audience for this unit?

• Grade 3 students

• High school students

• University students

• Business professionals