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Trade Financing Terms -
Consignment

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WHAT IS CONSIGNMENT?

In a consignment transaction, the goods are shipped to importer, but not sold. The title remains with the exporter until they are sold and payment made when the goods are sold. Although it can be a preferred settlement method of payment for the importer or buyer, it places the risk on the exporter or seller, including political or economic country risk or insufficient buyer funds.

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