Page 120 - eBook: EXIM for Beginner

2.4 Financial document

What is Financial document?

Financial documents is a documents associated with the
export process where the method of payment or terms

of payment is being choose

Purpose of documents:

• As protection to both exporter and importer

• Risk of Noncompletion - both the buyer and seller do
not want to be in the position of having neither money

nor goods

• Seller wants to have legal title to goods until getting

paid or at least assurance of payment

• Buyer doesn’t want to pay until receiving the goods or

receiving title to the goods.

• Transaction Exposure

• Financing