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Niku, a young entrepreneur, has received an export order and negotiated prices and INCO terms. Nick has doubts about receiving payment before or after shipment. The various methods of receiving payment in trade are explained: cash in advance, where payment is made before shipment, and open account, where goods are shipped before payment is made. Buyers agree to pay at a future date, typically 30 to 90 days after receiving goods. Foreign buyers may request payment terms.
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