How to Get Paid Safely When Exporting: A Payment Risk Guide
Non-payment is one of the biggest risks in export — and one of the most searched concerns for new exporters. Here's how experienced exporters actually manage it.
Vet the buyer before you ship
Request business registration documents, check trade references if the buyer has them, and for larger deals, consider a credit check through a trade credit agency or your bank.
Match the payment term to your trust level
- New, unverified buyer → advance payment or a confirmed letter of credit
- Some track record, moderate trust → documentary collection (D/P or D/A)
- Long-standing, high-trust relationship → open account
Use trade credit insurance for open account sales
If you extend open account terms to reduce friction with buyers, trade credit insurance covers a percentage of the invoice value if the buyer fails to pay — commonly used by exporters selling on 30-90 day terms.
Don't ship before payment terms are confirmed in writing
Verbal agreements on payment terms are a common source of disputes — always confirm terms in the proforma invoice and sales contract before production or shipment begins.
Frequently asked questions
Is a letter of credit always the safest option?
It's the safest against buyer non-payment, but it comes with real document-compliance risk on the seller's side — a single documentation error can delay or block payment even from a paying buyer.
What if the buyer requests open account terms on a first order?
This is a common request but a real risk signal — consider countering with a smaller trial order, partial advance payment, or a documentary collection instead.
Related tools and reading
Conclusion
Payment risk in export isn't eliminated — it's managed, by matching the payment term to how well you actually know the buyer and confirming everything in writing before goods move.
Formalize your terms before shipping: Create a proforma invoice →
Last updated: July 25, 2026