When to Use Cash in Advance Terms

 

(a) The importer is a new customer and/or has a less-established operating history.


(b) The importer’s creditworthiness is doubtful, unsatisfactory, or unverifiable.


(c) The political and commercial risks of the importer’s home country are very high.


(d) The exporter’s product is unique, not available elsewhere, or in heavy demand.


(e) The exporter operates an Internet-based business where the acceptance of credit card payments is a must to remain competitive