Ininternationaltrade,understandingcommonpaymenttermsiscrucialforsmoothtransactions.Herearekeypaymenttermsusedinforeigntradebusiness:1.T/T(TelegraphicTransfer)-Bankwiretransfer2.L/C(LetterofCredit)-Bankpaymentguarantee3.D/P(DocumentsagainstPayment)-Buyerpayswhenreceivingshippingdocs4.D/A(DocumentsagainstAcceptance)-Buyeracceptsbillofexchangefirst5.CAD(CashAgainstDocuments)-Paymentupondocumentpresentation6.O/A(OpenAccount)-Paymentaftergoodsreceived7.WesternUnion-Fastmoneytransferservice8.PayPal-Onlinepaymentplatform9.Escrow-Third-partysecuredpayment10.AdvancePayment-Partial/fullpaymentbeforeshipmentThesetermsdefinewhenandhowpaymentsaremadebetweenbuyersandsellersincross-bordertrade.Choosingappropriatepaymentmethodshelpsbalanceriskandbuildtrustininternationalbusinessdealings.
