🎬 Module 6A — Payment vs Incoterms: What’s the Difference?

🎯 Objective

Understand how Payment Terms and Incoterms are different yet connected in every agro-trade deal.

🪝 Hook (0:00 – 0:40)

“Most traders confuse payment terms with Incoterms.
One decides when money moves, the other decides who takes responsibility for the goods.”

💡 Visual Idea: Split-screen — 💰 Payment on left, 🚢 Delivery on right.

📘 Main Concept (0:40 – 2:30)

“Let’s simplify:

• Incoterms = Who handles the goods, shipping, and risk.
• Payment Terms = When and how money is paid.

Example: You sell turmeric under FOB Chennai + LC Payment.
• FOB → you handle goods until port.
• LC → buyer’s bank pays once documents are verified.”

💡 Visual: Flowchart showing
“Goods Movement (Incoterms)” → “Money Flow (Payment Terms)”.

⚠️ Common Mistake (2:30 – 3:15)

“Many new traders agree on payment but ignore shipping.
If your term is CIF, you still pay freight + insurance — even after sale!”

✅ Action Task:
Write down one real or sample deal.
List its Incoterm and Payment Term side-by-side.

🧾 Quick Summary (3:15 – 4:00)