non-payment

Exporting: Late or Non-payment for Overseas Sales

Exporting: Late or Non-payment for Overseas Sales

The risk of late or even non-payment can sometimes be greater when doing business internationally. Ensuring you get paid for overseas sales is a combination of assessing risk, settling on acceptable payment terms and methods and considering insurance to protect yourself against problems. To minimise the risks of nonpayment, you should research the market conditions in your target country and the credit worthiness of potential customers before you start trading. There are also currency issues you need to consider. In some countries where there are restrictions on access to foreign currency, your customers may face problems getting currency to pay you. In this case, it’s worth insisting on a (confirmed) irrevocable letter of credit that secures payments according to the terms of the cr... »