Navigating Payment Conditions for Exported Nigerian Agro/Food Products: Understanding the Essentials of Transaction Terms.

Payment term in any business is a major part of sales contract. There are 4 different types of terms of payment In International Trade. 

If we do not go in detail about definition and deep parameters, I will call this slogan – ‘ Business is money’. Although business man enjoy his day to day life in trade, if a loss occurs in business, everything collapse. So payment of any sales proceeds plays a very important role than any other roles in business. 

The major ways of making payment in export and import are given below:

* Advance payment

* D.A.P or D/P terms of payment means, Documents Against Payment.

* DA terms of payment (Documents against Acceptance).

* Documentary letter of credit:

i. Revocable

ii. Irrevocable unconfirmed

iii. Irrevocable confirmed