METHODS OF PAYMENT 

PAYMENT METHOD	WHERE USED	ADVANTAGES TO BUYER	ADVANTAGES TO SELLER
ENVIROTECH FINANCIAL, INC	All transactions where the foreign buyer wants shipment on an open invoice with terms of 30 days or more; or extended terms on purchase of equipment.	Obtain products or services immediately with no outlay of cash and terms of credit to meet their needs.	Immediate payment for products or services without any paperwork or the need to carry a receivable on books.  Eliminates all  financial risk to the seller!  Increase sales volume immediately!
Cash in Advance	New relationship.  Smaller Transactions.  Buyer unable to obtain L/C.	None.  Pays prior to receipt of goods and documents.	Eliminates risk of non-payment.
Confirmed Letter of Credit	Ability of importer and issuing bank to pay is uncertain.  In countries with regulatory requirements.  When seller needs L/C to obtain financing.	Provides reasonable assurance that proper shipment is made prior to payment.  May obtain lower price due to reduced credit risk for seller.	Substitutes local bank’s credit for that of buyer and issuing bank.  Provides assured, prompt payment.  Protects against cancellation of underlying sale contract.
Letter of Credit	Ability of importer to pay is uncertain.  In countries with regulatory requirements.  When seller needs L/C to obtain financing.	Provides reasonable assurance that proper shipment is made prior to payment.  May obtain lower price due to reduced credit risk for seller.	Substitutes bank’s credit for that of buyer.  Provides assured, prompt payment.  Protects against cancellation of underlying sales contract
D/P (Documents Against Payment)	Ongoing business relationship.  Transaction does not require protection and expense of L/C.  Sight payment.	Delays payment until receipt of documents.	Seller retains title to goods until payment.  Relies on banks to collect payment from buyer.
D/A (Documents Against Acceptance)	As for D/P; but allows for credit terms to buyer.	Delays payment until after receipt of goods.  Buyer is financed directly by the seller.	Seller retains title of goods until acceptance.  Relies on banks to collect payment from buyer.
Open Account	High trust relationships.  Inter-company transactions.	Allows buyer to delay payment until goods have been examined.	Offers attractive terms to buyers (and therefore assists business growth) but at the risk of non-payment!
Consignment	High trust relationships.  Buyer has no means to finance inventory.	Allows buyer to delay payment until goods have been sold.	Offers attractive terms to buyers (and therefore assists business growth) but at risk of non-payment and loss of merchandise!