International transactions

Payment methods, from safest to simplest

The payment method balances risk between buyer and seller — and shapes which documents must move and when.

• Advance payment — buyer pays first; safest for the seller, riskiest for the buyer.
• Letter of Credit (L/C) — a bank guarantees payment once the seller presents compliant documents. Balanced risk, document-driven, common in new relationships.
• Documentary collection — banks exchange shipping documents for payment or acceptance, without guaranteeing it.
• Open account — goods shipped and paid for later; simplest, best for trusted partners, riskiest for the seller.

The documents that move with the money

International payments are documentary: the right paperwork, accurately prepared, is what releases funds and goods:

• Commercial invoice — the basis for payment and customs value.
• Packing list — itemised contents, weights and dimensions.
• Bill of Lading — receipt, contract, and (when negotiable) a document of title that can control collection of the goods.
• Certificate of origin, inspection & insurance certificates — as required by the contract or L/C.

Incoterms — the bridge between deal and shipment

Incoterms 2020 define exactly where the seller's responsibility ends and the buyer's begins — for cost, risk and clearance. They are the shared language that lets the commercial contract and the physical shipment fit together. They affect your risk exposure and your import charges alike.

How Boabab helps

We align the logistics documents with your trade terms and payment method, prepare accurate paperwork, and time the release of documents to match the deal — so sellers get paid and buyers get their goods without friction. We'll advise on the Incoterm that best fits your transaction.