Free On Board (FOB): A critical variable for the Purchase Order Financing of any shipped or imported goods

Posted by on Oct 9, 2017 in Manufacturer Financing, Purchase Order Funding | Comments Off on Free On Board (FOB): A critical variable for the Purchase Order Financing of any shipped or imported goods

Free On Board (FOB): A critical variable for the Purchase Order Financing of any shipped or imported goods

Free On Board is a trade term indicating whom of the seller or the buyer is liable for the goods while being shipped between the two parties. Usual reference to this is FOB. In most cases, the supplier pays the shipping costs. This includes the insurance costs and covering fees from the production point to the delivery destination. Once delivered, the buyer is responsible for the goods. What does the Free On Board involve? FOB defines the supply chain point where the seller relinquishes ownership of purchased goods and where the buyer accepts...

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