Importing and Exporting: How to Protect Your Business Against Payment Risk

Author : NelsonWalker
Publish Date : 2021-05-29

Importing and Exporting: How to Protect Your Business Against Payment Risk

Learn as much as you can regarding your trading partners is a critical part of your business decisions. In international trade, especially online export and import, there's very little room for error in relying on a credible buyer or choosing a trustworthy supplier.

The vast availability of internet services has paved the way for successful partnerships which generate profit for both the exporter and the importer. But it's still very important to protect your business from the possibility of fraud, because of the concealment of a trade partner's true intentions and/or identity.

So how do you protect your business from the risk of non-payment? Here are some advice.

If the seller is more focused on the payment or if you prefer that cash payment should be made immediately made, more caution must be given to the business transaction. Be more cautious when the seller requests that you send money to a certain account whose real owner can't be traced.

Use The Letter of Credit or L/C

An L/C, Letter of Credit is the most preferred mode of payment in the global trade industry. But there's some possibility of fraud because of forged or incorrect shipping documents.

Reduce the possible risk of fraud by contacting the Letter of Credit issuing bank. Make sure you check the L/C number, name and address of the issuing bank, opening place, opening date, valid date, shipping date, applicant, amount, period of presentation, loading and unloading port, details of the partial shipment, details of the trans-shipment, etc.

Avoid T/T or Telegraphic Transfer Payments

For importers, it is simply not wise to accept an international supplier's request for prepayment. In many cases, a request for a Telegraphic Transfer payment involves attempted fraud.

For exporters, it is not wise to agree to accept a payment from a foreign buyer after they've received the products. When a buyer received products or samples without payment, it will be very hard to get them back.

Do Not Send or Expect Free Samples

For exporters, request a nominal payment for product samples. When an unknown buyer requests for product samples while hinting at a huge order, it's wise to request for a nominal prepayment.

For importers, request for samples to check product quality. Order a product sample prior to committing to a big order to ensure that the product you intend to purchase will meet your requirements.

When a business is constantly shipping packages, they will want to compare the rates of their current company to others that offer the same service. International parcel delivery is something that can be very expensive and is not offered by every shipping companies. The best prices are important for every business as well as the level of customer satisfaction.

When companies are in business, they want to make sure that they are choosing the best rates because it is going to affect the profit margin on each product that they are shipping. It will also affect the amount that they have to charge their customers for the shipping as well. There are a lot of benefits to being able to compare these charges.

International delivery of packages have to be kept at a rate that people are able to afford. There are many different sized packages. Some of them may contain fragile packages, while others may not.

The price of these as well as the care that the package receives is going to be very important to consider. Not everybody has the same options though. One nice thing about some companies is that they offer tracking of the package from the time it is shipped until it reaches its destination.

This can be a big advantage for many reasons. Choosing the best options are not always easy though. There are some packages that should be shipped with a certain carrier because of the type of material that is being shipped.

When people are considering general merchandise that does not have any special package requirements, they should be able to compare the rates and choose something that can save them on the fees.

International shipping can be difficult depending on where it is being shipped to or from. Finding the best place with all of the best options can be a difficult process sometimes, but it does not have to be.

The convenience of ordering shipping online and being able to print off the label at home is going to be a convenience too. There are a lot of people that will benefit from this. They can arrange for the pickup of the package and be done with it.

When someone can take care of everything and have it picked up from their home or office without having to go anywhere, this can save them time as well. This is something that people love about being able to order their shipping online.

It is a convenience that lets them continue doing what they need to do. They do not have to travel and end up losing more time. Time is something that is very important also.

The costs are important, but time costs money in the business world. If someone has to spend their time going to the place to ship a package, then they were not able to complete other tasks. It is something that may not be a big deal to some people, but for others, it is something that is very important.

Comparing costs each time a package is shipped does not have to take hours either. When someone is able to compare these rates by visiting one website, it is very helpful. Not everybody knows about these websites, but it is something that they can learn about very quickly and get used to visiting.

International parcel delivery is something that is very common, but not every business participates in it. There are many methods to shipping and many options that can go along with it. Choosing a company that meets the needs effectively while being cost-effective will be very important.

When people are shipping products for personal or business reasons, they will want to find the best possible shipping prices. By comparing prices, people can get the best prices and ensure the best prices

Category :business

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