Payment terms picker
Suggested payment terms for a buyer, from your history with them, the order size, their country and your insurance.
1. Your history with this buyer
2. Order size
3. Payment risk in the buyer's country
4. ECGC credit insurance on this buyer?
5. Can the buyer open a letter of credit?
Suggested terms
Answer all five to see suggested terms.
How it decides
- Higher-risk country: payment secured before or at shipment (advance or confirmed LC), whatever the history.
- New buyer: advance or part advance for small orders; a letter of credit for large ones.
- A few good orders: documents against payment for small orders; a letter of credit for large ones.
- Long-standing buyer: credit terms (D/A or open account) only with ECGC cover; otherwise D/P.
These are cautious rules of thumb, not financial advice. Your bank's trade finance team can review a specific deal, especially the terms of any letter of credit.