Disadvantages: exporters have certain risks. If the importer's funds are difficult or the market changes after the goods arrive in the importing country, the importer may not get the bank to honor the bills. How to deal with the goods is a very difficult problem for exporters.

D/P at sight means that the exporter draws a draft at sight and sends the draft together with the documents to the collecting bank at the place of import through the collecting bank; The collecting bank presents the draft at sight to the importer; The importer will pay the redemption order immediately after checking the relevant documents, and the payment will be delivered at the same time as the documents representing the ownership of the goods.

According to the different payment time, D/P can be divided into D/P at sight and D/P at future.

D/P at sight means that the exporter draws a sight draft together with the shipping documents after delivery, and presents it to the importer through the bank. The importer pays the bill immediately after seeing it, and the importer receives the shipping documents from the bank after paying off the payment.

payable at usance

D/P at a later date means that the exporter issues a time draft together with commercial documents after delivery, and the importer prompts the importer through the bank. After checking, the importer will accept the draft and pay off the payment on the maturity date of the draft before receiving the commercial documents.

Whether it is D/P at sight or D/P at future, the importer must pay off the loan before obtaining the documents, taking delivery or reselling the goods.