DIRECT PAYMENT

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The exporter undertakes to ship the goods to his customer and issues an invoice for payment.The credit period is usually 30 days from the date of invoice. 

The risk here is obvious and this method depends on trust and a good business relationship. In direct payment the importer makes the payment directly to the exporter and/or uses an entity to make this payment without further commitment from that entity. 

The most common means of payment for direct payments are cheque, payment order, money order or transfer. SThe terms of payment are normally used when the terms of payment are cash, current account or consignment. It represents a certain form of anticipation with the variant that it is the buyer who receives all the advantage, leaving the seller at a complete disadvantage, as he has to send the goods and wait for payment until they have arrived at their destination.

It may happen that the importer withdraws the goods and deliberately and unduly delays payment, or fails to make payment at all, with serious losses for the exporter who, in the best case scenario, will have to return the goods to their destination at unforeseen costs, thus suffering an actual loss. 

In this mode there are no guarantees, the intervention of a bank is limited to facilitating a transfer on the customer's instructions.