How do you choose the right payment method for international trade?

The payment method reflects your level of trust with the buyer and the size of the deal. These questions help you choose:

1. How well do you know the buyer? Secured methods come first on a first deal.
2. How large is the amount? Bank charges can be disproportionate on small deals.
3. What is the country risk? Currency and transfer restrictions affect the method.
4. Can you prepare the documents perfectly? With a letter of credit a small discrepancy can delay payment.
5. How long can your cash flow wait? Selling on credit creates a financing need.

We recommend making the decision together with your bank and legal adviser; we compare the options against your business plan.