The document discusses various payment terms that can be offered by exporters to foreign buyers, including cash in advance, letters of credit, documentary drafts, and open account. It provides details on each payment term, including their applications, advantages, and disadvantages. Letters of credit are further broken down into types like irrevocable, revolving, and standby letters of credit. The document also compares the different payment terms in terms of timing of goods availability and payment. It concludes with a discussion on types of credit risks in international trade and ways to manage those risks.