Payment split across the order, for example a deposit to start, the balance before shipment, and a retention released after delivery. A common split is 30% deposit, 60% before shipment, and 10% net 30 after delivery.
When it fits
Established relationships and private label programs, where both sides accept a phased schedule tied to production milestones.
Letter of Credit - ICC UCP 600
What it is
A bank undertakes to pay the seller once the seller presents documents that comply with the agreed terms. The buyer's bank, not the buyer, carries the payment obligation.
When it fits
Large or first-time cross-border deals where both sides want a bank-backed guarantee before goods move.
Cash Against Document - ICC URC 522
What it is
The shipping documents that release the goods are handed to the buyer only against payment, handled through the banks. Lighter and lower cost than a Letter of Credit.
When it fits
Mid-trust deals that need more protection than an open account, but not the full cost of a Letter of Credit.
Buy Now, Pay Later - Regulated fintech partners
What it is
An eligible buyer defers payment over an agreed term, while the seller is paid up front by the regulated fintech partner. The partner carries the buyer's credit.
When it fits
Qualified buyers who want working-capital flexibility, on the marketplace and on private label programs.
Card and bank transfer - Standard B2B rails
What it is
Direct payment by card or bank transfer through a regulated payment provider, settled quickly.
When it fits
Smaller orders and ready-stock marketplace purchases where bank-backed instruments are not needed.
