Getting paid safely by a new overseas customer
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A distributor we met at a trade fair wants to place a sizeable first order, but they are asking for sixty-day open account terms. We have no payment history with them and their country is new to us.
Our bank suggested a confirmed letter of credit, while our export credit agency offers insurance that would cover most of the risk. The customer finds letters of credit slow and expensive. What payment structure have you used to build trust with a new buyer without exposing yourself on the first shipment?
Our bank suggested a confirmed letter of credit, while our export credit agency offers insurance that would cover most of the risk. The customer finds letters of credit slow and expensive. What payment structure have you used to build trust with a new buyer without exposing yourself on the first shipment?
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