Question

In international trade, problems involving bad debts are more easily avoided than rectified after they occur. Credit checks and the other methods that have been discussed in this chapter can limit the risks. Nonetheless, just as in a company’s domestic business, exporters occasionally encounter problems with buyers who default on their payment. When these problems occur in international trade, obtaining payment can be both difficult and expensive. Even when the exporter has insurance to cover commercial credit risks, a default by a buyer still requires the time, effort, and cost of the exporter to collect a payment. The exporter must exercise normal business prudence in exporting and exhaust all reasonable means of obtaining payment before an insurance claim is honored. Even then, there is often a significant delay before the insurance payment is made.

Discuss different options of obtaining payment

Answer 1

Options of obtaining payments

1. Exotic option : any of the broad category of option that may include complex financial structure.

2. Adjustable - rate mortgage (redirect from payment option ARM )

This type of loan allows a borrower to choose their monthly payments.

3. Lease option :

Lease option works as an automatic savings plan for the tenant. This down payment is applied as part of the " Option consideration fee". In the arena of lease.

3. Binary option :

While the latter pays the value of the underlying security. They are also called all-or-nothing Options, digit option (more common in forex/interest.

4. Pay pal (redirect from criticism of pay pal ):

Pay pal will remaia payment option for shoppers on Bay, but it won't be prominently featured head of debit and credit card option as it is today.