The Use of Selected Payment Instruments by Companies Operating in Foreign Markets
The Use of Selected Payment Instruments by Companies Operating in Foreign Markets

Summary/Abstract: The paper focuses on payment terms companies opt for when trading on international markets. More specifically, it analyses the use of different payment instruments that were dealt with among companies based in the Czech Republic in a five-year period (2012–2016). In total, five payment instruments were included in the survey: bill of exchange (B/E), documents against payment (D/P), documents against acceptance (D/A), letter of credit (L/C), and bank payment obligation (BPO). The goal of the research was to discover to which extent and for which main motives these five selected payment instruments, used nowadays in international business environment, were introduced by companies into their international sales contracts. The main finding of the investigation is that most companies from the survey did not prefer to use any of the five proposed payment instruments, as they used others that can be considered as easier to handle.

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