Payments for Exports

Other means of payment are as follows:

Cash in Advance

This requires trust by your buyer that you are going to despatch the correct goods in good order and on time. However also consider whether your buyer could get better payment terms from your competitors. Insisting on cash in advance may lose you customers.

Documentary Collection

If goods are despatched sea freight this method of payment could give you a degree of security whilst also giving the buyer the assurance that the goods have been shipped. All documents (Bills of Lading, Invoice, Packing List, Bill of Exchange are sent to the buyers bank via a UK bank. The overseas bank cannot release the documents until the buyer has paid or, in the case of a termed Bill of Exchange, accepted the Bill. This means that  your customer cannot get hold of the goods without paying for them. Of course if for whatever reason the buyer never goes to the bank to get the documents you will not get your money. The buyer will not get the goods so you now have the opportunity to pay to have them returned or to find an alternative buyer.

We can help you with all your documentation and submit them to the bank for forwarding on a collection basis.

Please contact us on 01275 370 716 for more details.

Open account

You despatch the goods and invoice your customer. This is the riskiest option for the exporter.