Hey Guys,
I just need some advice on limiting risk of non-payment in doing international business. It appears as if 90% of the international buyers are reluctant to pay for goods by Letters of Credit. They either request CAD, D/P or D/A. Some even go farther to demand payment after 14 days upon arrival at their warehouse and analysis of goods. All these terms of Payment come at a risk.
In these circumstance, what are options to talk them into working with Letters of Credit? We have no problem allowing 30-60 day differed payment. And the quality of cargo can be certified by issuing Quality Certificates from an institution like SGS. What are my options?
In large agribusinesses (ADM, Bunge, Dreyfus, Olam etc) what payment terms do they work with when exporting agricultural products?
Please help!
International Buyers Pushing for other Payment Terms! Remedies?
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csceyl
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picant
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- Joined: Wed Aug 20, 2008 1:49 pm
Re: International Buyers Pushing for other Payment Terms! Remedies?
Hi Pal,
problems of costs, but l/c is necessary when you have no idea about the buyer.
Some credit istitutions offer forfaiting or factoring assuming the risk of buyer's default.
Other banks offer "confirming", you trade 60 days and buyers bank pay you at sight
cashing interests.
Your bank in your Country may give you advices about your problem.
Ciao
problems of costs, but l/c is necessary when you have no idea about the buyer.
Some credit istitutions offer forfaiting or factoring assuming the risk of buyer's default.
Other banks offer "confirming", you trade 60 days and buyers bank pay you at sight
cashing interests.
Your bank in your Country may give you advices about your problem.
Ciao