GlossaryEN1 min readUpdated: Jun 13, 2026

Incoterms financing

The choice of Incoterm shapes payment and financing options in an export transaction.

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Last updated: 13 June 2026Published: 27 January 2026

Source: https://iccwbo.org/resources-for-business/incoterms/

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Incoterms 2020 Simulator: Who bears costs & risk?

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Definition & Explanation

The choice of Incoterm shapes payment and financing options in an export transaction. While an Incoterm does not prescribe financing itself, it defines risk and cost allocation, which in turn influences creditworthiness assessment and available financing instruments. Example: FOB keeps export risk with the seller until loading, favoring certain documentary credits or supplier financing; CIF transfers transport risk to the buyer, requiring different financing structures. Banks and credit insurers therefore factor Incoterm choice into their assessment of financing applications.

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Compare IncotermsClarify duties, cost and riskOpen Find HS codeDetermine the tariff number for customsOpen Calculate customs valueWork out import duties and customs valueOpen Calculate transit timeEstimate duration per transport modeOpen

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Incoterms financing

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