Import payment risk and solutions to protect your business
Trading internationally provides opportunities for a business to find new income sources – but it also has unique challenges.
Distance to market, time zones, cultural and language difficulties, unknown standing of the supplier, country and regulatory impacts are just some of the issues you need to plan for. Foreign exchange, transport, fraud (internet and other scams), sanctions and money laundering, all present risks for the importer.
Before you enter into any agreement to import goods you need to consider:
- Can your supplier really handle the transaction size and quality?
- How well do you really know your supplier? Do they have a history in exporting? Have you done your research (not just from the internet)?
The most important risk from an importer's viewpoint is whether they will receive the goods they ordered once paid for.
Although both parties to the commercial sales contract have a mutual interest in each transaction being successful, their respective interests in relation to payment are very different. Good payment terms to the importer may mean poor payment terms to the exporter, or vice versa. Consider starting with a low risk option and moving to other solutions as confidence in the supplier relationship grows over time.
It is important to understand your options and ensure the payment method is agreed and very clearly stated in the underlying commercial contract.
How ANZ can help
We can help you protect and grow your business with a range of import solutions. Our experienced team will work with you to understand your needs and provide solutions to help you mitigate your risks and manage your import cash flows.
We invite you to explore our range of import capabilities and solutions in greater detail. If you have questions or want more information, please contact our Trade Finance desk.
ANZ lending criteria, conditions and eligibility criteria apply and fees may be payable.