Getting paid
How letters of credit, documentary collections and credit risk fit together, and which one protects an exporter who cannot afford to wait for a buyer's promise.
Each section walks through one part of an export transaction, from the paperwork to the money landing in your account.
01
Commercial invoices, packing lists, bills of lading and certificates of origin have to agree with each other and with the letter of credit. The documentation section shows where mismatches usually start and how to check a document set before it goes to the bank.
Export documentation and Incoterms
02
Export controls and sanctions screening depend on the item, the destination and the end user. The compliance section covers how to classify a product, what a denied-party check involves, and when a license is needed rather than assumed.
Trade compliance and export controls
03
Letters of credit, documentary collections and open account terms shift risk in different directions. The getting-paid section compares what each method requires from you, how banks handle discrepancies, and where credit risk sits when the buyer delays.
Letters of credit and credit risk
Export documentation
A commercial invoice that disagrees with the letter of credit is the most common reason a compliant shipment is refused at the bank.
Three parts of the payment chain that decide whether an export invoice actually turns into cash.
Banks pay against paper, not against goods. A commercial invoice, packing list, bill of lading and certificate of origin each have to match the credit's wording — shipper name, port names, description of goods, latest shipment date. One mismatched spelling can turn a clean presentation into a discrepancy and delay payment until the buyer waives it.
Letters of credit and collections
Open account gives the buyer time and leaves you carrying the gap between shipping and settlement. Cash in advance removes that gap but few buyers accept it. Between them sit documentary collections and confirmed credits, and the right choice depends on how long you can fund materials and freight before the money arrives.
Export finance and working capital
Export controls and sanctions screening sit before the goods move, not after. A license requirement, a restricted party match or a dual-use classification question can stop a shipment that is already booked. Building the check into order acceptance rather than into the shipping week keeps the payment timeline intact.
Trade compliance and export controlsLetters of credit, collections and credit risk
Work through the payment terms before the shipment leaves: what the buyer's bank must do, which documents trigger payment, and who carries the risk if a document is wrong.
Read the getting-paid articlesExporter Handbook
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