The-definition.com

Definition

Consignment

Consignment is a method of financing trade. When goods are shipped on a consignment basis, related shipping documents are dispatched either directly to the importer or through his bank, which will be instructed to deliver them, free of payment, against a simple form of receipt undertaking payment when the merchandise is sold, or within a specified time.

Payment is usually made when the goods are sold, or within a specified time thereafter, and title to the goods remains with the exporter until they are sold by the consignee.

Webster Dictionary Meaning

1. Consignment
- The act of consigning; consignation.
- The act of consigning or sending property to an agent or correspondent in another place, as for care, sale, etc.
- That which is consigned; the goods or commodities sent or addressed to a consignee at one time or by one conveyance.
- The writing by which anything is consigned.
Share it:  Cite

More from this Section

  • Banker's
    Banker's are a short-term credit investment created by a nonfinancial firm and guaranteed ...
  • Accounts receivable financing
    Accounts receivable financing is a short-term financing method in which accounts receivable ...
  • Ratio percentage test
    Ratio percentage test is a test that a qualified pension plan must meet to receive favorable ...
  • Allied member
    Allied member is a partner or stockholder of a firm that is a member of the NYSE, the ...
  • Full compensation
    Full compensation is an arrangement in which the delivery of goods to one party is fully ...