🎬 Module 6B — Payment Terms in Agro Trade

🎯 Objective

Learn major domestic and international payment methods, their safety level, and when to use each.

🪝 Hook (0:00 – 0:40)

“You found a buyer — but will you get paid?
Let’s look at how agro traders actually move money — from local cash deals to bank-guaranteed LCs.”

💡 Visual: Icons: 💵 → 📦 → ✈️ → 🏦

🇮🇳 Domestic Payment Terms (0:40 – 2:00)

“Domestic trade runs on speed + trust:

• Advance / Partial Advance: Safest for new deals.
• Cash on Delivery (COD): Good for small/local trades.
• Credit (7–30 days): Use only with trusted partners.”

💡 Tip: Always issue an invoice and keep proof of payment, even locally.

🌍 International Payment Terms (2:00 – 4:00)

“Global deals need structured safeguards:

• Advance Payment: Simple but buyer-risky.
• Letter of Credit (LC): Bank-backed — safest for exporters.
• Documents against Payment (DP): Buyer pays on seeing docs.
• Documents against Acceptance (DA): Buyer promises later payment — riskier.”

💡 Visual: Animated scale showing Risk to Seller ↔ Risk to Buyer.

🧮 Choosing the Right Method (4:00 – 4:45)

“Start with Advance or LC for first orders.
Move to DP / DA only after trust builds.”

✅ Action Task:

🧾 Recap (4:45 – 5:00)

✅ Document every payment
✅ Prefer bank-routed transactions
✅ Avoid long credit on new deals