1. Remittance: The advantages are convenience, quickness, flexibility, simplicity, minimal intermediate procedures and the most direct way. The disadvantage is commercial credit and poor security. If the payment is made in advance, the importer will face the risk that the exporter will not deliver the goods.

2. Letter of credit: The advantage is that bank credit is relatively safe. When settling accounts by letter of credit, the beneficiary's (exporter's) collection is guaranteed, especially when the exporter doesn't know much about the importer and the importing state-owned foreign exchange is controlled, the advantages of letter of credit are more obvious. Disadvantages are complicated procedures, strict requirements for documents and high bank charges.

3. Collection: The advantages are low cost, simple operation, convenience for the buyer's funds and improvement of export competitiveness. The disadvantage is poor safety and high risk, because the exporter delivers the goods first. If the importer refuses to pay, even if the title certificate is still in the hands of the exporter, the goods will remain in the other port, and the backlog and the freight and bank charges for returning home are no small losses.

4. Western Union remittance: The advantage is that Western Union remittance procedures are simple. Using the world's most advanced electronic technology and unique global electronic financial network, remittances can be processed in nearly 200 countries and regions around the world in real time. After a few minutes, the payee can receive the remittance in full. The disadvantage is that the remittance fee is charged on a per-transaction basis, which is higher for small-sum receipts and higher than other remittance methods.

Extended data:

Precautions:

1, 30% T/T deposit +70% sight, confirmed and irrevocable letter of credit.

2. 100% sight, confirmed and irrevocable letter of credit +CIF terms of transport.

3. At sight, confirmed and irrevocable letter of credit+FOB; It is best to arrange the shipping company at the destination port by yourself and have a good cooperative relationship with the shipping company in order to control the goods.

4.30% T/T deposit +70% B/L fax payment; (This payment method is suitable for businesses with small transaction volume. If the transaction amount is large, this payment method is not applicable. Because it is impossible to guarantee the final demand of foreign businessmen for goods. Maybe foreign investors give up trading because of market changes).

Baidu encyclopedia-international trade payment method

Baidu encyclopedia-foreign trade payment

Baidu encyclopedia-payment method

Baidu encyclopedia-remittance

Baidu encyclopedia-letter of credit

Baidu encyclopedia-collection

Baidu encyclopedia-western union remittance