Cash or Cash in Advance Seller receives cash in full from Buyer prior to shipment.
Acceptable cash is U.S. dollars or marketable foreign exchange.
The U.S. Bank that confirms the LC assumes all credit, political and exchange risks of the foreign bank and its country. Seller presents documents and LC to U.S. bank for collection. The U.S. bank can provide assistance in this regard. U.S. bank sends documents to foreign bank that remits payment back through U.S. bank and forwards documents to buyer. The Buyer has made arrangements with its bank to repay the amounts due under the Draft.