Full Advance Peyment
The most secure method of trading for exporters and, consequently the least attractive for buyers.
Payment is expected by the exporter, in full, prior to goods being shipped.
As one might imagine, having covered the two extremes on the Payment Risk Ladder, commercial decisions have to be made and this usually results in selecting one of the middle rungs of the ladder. This is where banking products such as Bills for Collection and Letters of Credit come in to play.