You have a new customer without a payment history. To minimise your risk, request payment in advance, but this is the least attractive option for the buyer.
Furthermore, asking for cash payment in advance is a disadvantage when competing with other suppliers available to the buyer worldwide.
The truth is that if you insist on cash payment in advance as your only payment method for doing business worldwide, you can limit your export potential and thereby lose out to competitors who are willing to offer more attractive payment terms.
Risks arise in transactions where payment and delivery do not occur simultaneously. As a seller you want to secure payment from your buyer before you deliver. However, your buyer does not want to pay in advance without guarantees on delivery of the goods or services. In addition, there are often multiple parties involved in the transaction, such as intermediaries and transporters. The payment by the customer must ultimately be distributed correctly among all parties involved.
- You no longer have to waste time and money collecting late payments or investigating
the buyers’ credit history.
- Buyers and sellers experience the same benefits: 100% certainty.
- Receive immediate information about the status of transport and payment.
- Increase the trust among new customers.
- All-in-1: transport and payment.