Handling International Payments

Handling international payment can be complicated and risky. Different nations have different monetary units, and the currency of one country often cannot be used for making payments in another country.

There are a number of different payment methods for foreign commerce. Some are riskier than others. Be very careful about what type of international payment method you will use or accept. Remember, it's difficult to assess long distance creditworthiness and even more difficult to collect payment if your buyer or shipper defaults across an international border.

Payment in Advance
This is obviously your best bet as an exporter. The buyer sends the money by wire transfer along with the order. If you're the one wiring the money, you need to be sure about the supplier's reliability. Initially, you may want to split the cost, paying half up front and half upon delivery. Once satisfied with the supplier, you can negotiate different terms.

Commercial Letter of Credit (LC)