Saving the Sale When a Customer Rejects LC Terms

Veteran credit pros are aware that there is a payment term with an intermediate level of risk to the seller: Documents Against Payment (DP) or Documents Against Acceptance (DA), also known as documentary collections.Besides potentially saving the sale at acceptable risk, DP and DA payment terms are considerably cheaper and easier to use than a LC, for both buyer and seller. Also, payment is often faster than in the case of open account.As added security, the seller retains control of the goods…