There are various methods of payment available. but the two we recommend the most because of the protections provided are:
1. Letters of Credit - gives the seller the guarantee that the payment will be made by the buyer (guarantee from the buyer's bank and another from the seller's bank) and guarantees the buyer that the seller will supply according to specifications.
2. Escrow - Ensures that the correct goods and specifications are sent by the supplier and that the funds are ready for payment.
Other methods of payment include:
3. Cash with order(CWO)-the buyers pay cash when he places an order.
4. Cash on delivery(COD)-the buyer pays cash when the goods are delivered.
5.Bills for collection - here a Bill of Exchange (B/E) is used
6. Open account - this method can be used by business partners who trust each other;the two partners need to have their accounts with the banks that are correspondent banks.