Advance Payment

A type of payment in which some or all of the cost of the goods imported by the importer to the exporter is paid in advance before the goods are shipped or processed at the customs.

• The most risky form of payment for the importer; There may be a risk that the seller (exporter) will not send the goods even though he has received the goods in advance. For this reason, it is important to trust the seller.
• Since the price of the goods is paid in advance, there may be a chance for a discount.
• It is the type of payment that provides the most benefit to the exporter since the cost of the goods is collected as a prepayment.
• Bank commission and expenses in cash payments are less than other types of payments.