International trade creates a range of payment challenges for exporters and is something that you must get right to be successful.
With your buyer on the other side of the world, how do you make sure you get paid?
When deciding on payment options for your export business, some of the things to consider are:
- how much can you trust your buyer?
- have you established a strong relationship or is this the first transaction with the company?
- how much risk are you prepared to take?
- how much risk is your buyer prepared to take?
- how large is the transaction?
- can you bargain for more favourable terms with this buyer?
Answering these questions can help you to arrive at the best payment option for your export business, and for the specific export contract that you are dealing with.
Your bank will also be able to provide more comprehensive advice about payment options and the relative advantages of each, based on your particular situation.