Discusses the most common methods of payment, such as open account, letter of credit, cash in advance, documentary collections, factoring, etc. Includes credit-rating and collection agencies in this country. Includes primary credit or charge cards used in this country.
Last Published: 7/22/2019

The following financial instruments are used in BiH to make payments abroad: documentary collections, checks, and letters of credit.  The safest method of receiving payment for a U.S. export sale is cash-in-advance and/or irrevocable letter of credit.  However, most importers prefer to avoid this costly instrument.  Many claim to do business on open account terms with their European suppliers.  Nevertheless, a confirmed letter of credit should be a minimum term.  Companies that acquire capital goods expect the vendor to provide financing, preferably in the form of a loan.

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.

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