ADVANCE PURCHASE

A B C D E F G H I J L M N O P Q R S T U V W Y Z
ADVANCE PURCHASE — A form of countertrade and export financing used when the initial exporter lacks sufficient funds to pay for required imports, and the counterparty is unsure of the partner's solvency. Under this arrangement, a company supplies goods to a foreign counterparty in advance, with the proceeds credited to a special escrow or conditional account at the importer's bank. Once the account reaches an agreed threshold, the counter-delivery is executed, and guaranteed payment is made from the conditional account.