The differences can be explained briefly as follows;
a. Cash -in Advance- This is the case whereby the buyer pays for the goods before receiving it and it is aided or coordinated with the help of a third party. This is the type that most exporters are comfortable with
b. Open account-This is almost the opposite of Cash-in-Advance because the seller has to send the goods across to the buyer after which the buyers then pays
c. Documentary collections is done with the help of the bank by collecting all the required documents from the seller and sends to the buyer or the importer's bank
d. Documentary Credits- In this case the bank pays the role of a guarantor for the buyer and also for the seller to fulfill their obligations