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Documentary collections:

Advantages:

1. Faster receipt of payment.

2. Better price than LC.

3. Payment warranty to the exporters.

Disadvantages:

1. There is no verification of the accuracy of documents.

2. Bank does not guarantee payment.

3. There is a possibility of paying for the return transportation if the buyer refuses to do so.

Open Accounts:

Advantages:

1. Easy to negotiate.

2. It can help you land a sale faster.

3. It will help your business be more competitive.

Disadvantages:

1. Receivables may be harder to finance.

2. No assurance of payment.

3. Difficulty of collection.

Example on how to answer

I found your information stated to be essential for understanding the topic better and realizing how there is numerous way of payment methods in regard to selling internationally. I found quite some more advantages for Documentary collections, such as reliability and safety. Both payments method were detailed and well explained. I found it to be really helpful for this topic specific. It is vital to understand these well before making a transaction. Great job. You can find more information about it at the following link.