AN EMPIRICAL STUDY ON THE MAJOR REASONS WHY EXPORTERS CHOOSE THE CASH-AGAINST-GOODS PAYMENT METHOD AND THE RELATED PROBLEMS EXPERIENCED IN PRACTICE

Abstract

Use of the cash-against-goods payment method in export transactions is very risky for exporters. Despite this fact, this method of payment is merely chosen and frequently used by many exporting firms. This study aims to explore both the major reasons underlying exporting firms? willingness to use the cash-against-goods payment method and the problems associated with its use in foreign trade transactions. For this purpose, a questionnaire study has been conducted through face-to-face interviews with a sample of 42 corporations operating in Bursa which was the second city in Turkey for the years 2014, 2015 and 2016 in terms of export performance. According to the results of the tests performed using the quationnaire data, some significant conclusions have been inferred about the use of the cash-against-goods payment method and the related problems experienced by the firms.