As trade advisers we love reading blogs on – well, trade stuff and if you’re reading this then perhaps you love reading International trade blogs too ….. or perhaps your interest was spiked because of this very relevant and often undervalued topic.
A recent discussion online focused on the aspect of “Getting paid for your exports” and we thought how relevant this question still is for many businesses both large and small.
1: It’s never rude to discuss payment terms
2: The deal won’t be jeopardised because you bring up the concept of payment
3: Payment terms, currency and the dates for payment all form the basis of export negotiations
4: A good set of export documents will solve all your troubles
Payment terms and the procedures around releasing cargo (sending goods) are extremely important and something your whole team, from finance to warehousing should be aware of.
One key consideration for our team (and our clients) is at what point do we lose control of the cargo. When would the buyer’s delayed payment create problems for us as a business?
All exporters need to evaluate the risks associated with non-payment and decide on the rules and procedures your company will adopt. Then, and this is the hard part, don’t break them.
A well written proforma invoice or sales contract will avoid many of the misunderstandings that can get buried in the multiple emails between you and the buyer. It will stipulate the currency, the method of payment, the goods description, packaging, pricing and shipping information (including your Incoterms) and the lead-times you need.
Remember – Email dialogue is perfect for your discussions with a buyer but when you are in a position to quote someone, go straight for your proforma invoice or sales contract template.
Not only will you present as a professional and capable exporter, but you will greatly reduce the risks associated with non-payment.
WHO IS CVEN ?
CVEN is an export advisory with a difference. Our team are hands on and engage internationally with buyers, compliance agencies and logistic specialist on a daily basis. This means the information we provide and the pathways we use are the result of the international business we undertake, everyday.