6.2 Direct Payment

The simple route: the buyer pays the seller — the three faces: Payment in advance: the buyer's trust — the seller's security (the buyer's exposure: the goods may never come); Open account: the seller's trust — the buyer's credit (the goods first, the payment later — the seller's exposure: the collection risk); The consignment settlement: the agent sells and remits (the settlement after the sale). The risk's allocation (the analysis): each face shifts the credit risk wholly to one party — which is why the middle instruments (the collections, the credits) exist: the bank's hand between the trader's trust and the goods. The mechanics: the wire transfers through the banking channels (the exchange controls of Unit 7 on top — the NRB's permissions); the currency-and-compliance questions (the KYC/AML discipline).