Plain-language definitions of 133 terms used in raw material trade: Incoterms, payment, shipping, customs, quality documents, plastics, metals, chemicals, agriculture and energy.
The seller ships the goods and sends the documents directly to the buyer, who pays the invoice on a due date (e.g. 30–90 days). It is the most favourable method for the buyer and the riskiest for the seller, who manages the credit risk through trade credit insurance, factoring or a standby letter of credit. It is standard in long, trusted relationships and in some markets such as intra-EU trade.
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