An Analysis on Combined Use of Payment Terms in International Trade

Combined use of payment terms in international trade is a new tendency in intemational settlements. It mainly takes three forms, i.e., combined uses of remittance and L/C, D/P and payment in advance, documentary collection and L/C. Buyers and sellers can overcome the defects of single payment term and control risks and lower costs by using the above-mentioned forms. Buyers and sellers should enlarge proper use of the above-mentioned forms instcad of the restricted choice of single payment term.