An importer will generally try to avoid making payment for a purchase before the goods are actually shipped by

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Having payment sent to a bank in the exporter's country to be held until proper shipment is made is a common method for importers to avoid making payment before the goods are actually shipped. This method provides assurance to the importer that their payment is secure until the goods are shipped and reduces the risk of fraudulent or incomplete shipments. Purchasing a letter of credit can also be beneficial, but it involves additional fees and paperwork. Post-dating a check or insisting on payment only upon delivery are less common or impractical methods for international transactions.

An Importer Will Generally Try to Avoid Making Payment for a Purchase