Company Name:
Lishui Huanqiu Bearing Trading Co., Ltd.
Company Address:
No.11 Shiting Road, Shuige Industrial Zone,Lishui, Zhejiang,China
Contact Person: William
Email: admin@tradebearings.com
Homepage: www.asiabearings.com
Bearing B2B: www.tradebearings.com
To decide what payment terms and payment methods to offer overseas customers, assess the level of risk that trading with them will entail.
You should research the market and the local trading conditions, including the economic and political situation, for an overall picture. See the page in this guide on how to research overseas customers' and markets' creditworthiness.
You can then make an informed decision about the level of risk you're prepared to accept, and how to manage it.
The risk ladder
To find appropriate payment terms with overseas customers you need to balance your risks against customer requirements and expectations. What is more secure for you is more risky for them - and vice versa.
Most international trade transactions are carried out in the middle of the ladder - balancing the risks of the seller with the needs of the customer.
Which payment terms to use is a key decision when starting to trade overseas. Get advice if you are unsure. Contact an international trade adviser from UK Trade & Investment for help.
The International Chamber of Commerce has established rules governing documentary credits worldwide. The Uniform Customs and Practice for Documentary Credits (UCP600) is a set of internationally accepted rules on the issue and use of letters of credit. These rules are commonly used by banks in commercial transactions worldwide. As they are incorporated into contracts voluntarily, the rules are flexible, but once applied to any documentary credit, they are binding on all parties to the credit, unless specifically modified or excluded by the credit.
You should use Incoterms, an internationally agreed set of delivery contract terms, in all your contractual agreements with overseas customers to avoid confusion and legal disputes. See our guide on international trade paperwork: the basics. But remember that Incoterms cover your delivery terms only - they do not cover payment arrangements.
( liyy )18 Jan,2011
