Payment Methods & Terms
When working with FoodiGlobal, understanding the available payment methods and terms is essential for a smooth and secure transaction. Below is a clear guide to help you choose the best payment model for your business.
Why B2B Payments Differ
B2B payments involve transactions between two businesses for goods or services. Unlike consumer payments, B2B transactions are typically larger in volume, often recurring, and involve multiple departments such as procurement, accounts payable, and accounts receivable.
Payment cycles also tend to be longer, and industry-specific requirements may apply. To meet the needs of our international partners, FoodiGlobal offers several secure and flexible payment methods.
Available Payment Methods
CAD — Cash Against Documents
CAD is a secure payment method in which the importer pays for the goods before receiving them. A trusted third party (usually a bank) holds the shipping and ownership documents until the buyer completes the payment. Only after payment is received are the documents released to the importer, allowing them to take ownership of the goods.
This method works similarly to an escrow in real estate transactions. It protects both sides: the exporter is guaranteed payment, and the importer is assured of receiving the goods as agreed. Even while documents are held by the third party, ownership of the goods remains with the exporter until full payment is made.
Collection
Collection is a conditional payment method where a bank or authorized financial institution collects the specified amount on behalf of the seller. The bank releases the shipping and commercial documents (such as invoices, certificates of origin, bills of lading, and insurance documents) to the buyer only after the agreed conditions are met.
For the seller, this method allows control over the goods until payment or acceptance of the documents. For the buyer, it provides the advantage of inspecting the goods upon arrival and, in cases of deferred payment collection, the possibility of obtaining short-term trade credit.
LC — Letter of Credit
A Letter of Credit is a bank-issued guarantee that payment will be made to the exporter once all terms and conditions specified in the LC are fulfilled and the required documents are presented. The buyer arranges the LC through their bank, which assumes the payment obligation on their behalf.
This method is particularly useful when reliable credit information about the buyer is limited, but the exporter trusts the issuing bank. It also protects the buyer, as payment is only triggered after the goods have been shipped according to the agreed specifications.
Payment Deadlines and Terms
FoodiGlobal typically structures transactions with payment terms aligned closely to the shipment date. The most common approach is prepayment, often combined with a down payment to ensure a smooth process for both parties.
Every transaction can be tailored to your specific needs while maintaining full transparency. Our team works closely with partners to select the most suitable payment method and timeline based on the nature of the deal, volume, and mutual trust.