Do you plan to launch yourself, or are you taking your first steps, internationally? Before importing or exporting, it is essential to secure your international payments. Update on the main means of payment, the regulations to follow, and the tools available.
How To Manage Your International Payments?
Many means of payment exist to manage your international payments, with among the most common SEPA or SWIFT transfers, checks, commercial papers, or documentary credit. It is important to adapt your means of payment according to the amount of the transaction or your activities. The choice of payment method and the deadline is a key element of your commercial offer.
Easy to use, these common means of payment facilitate your transactions. Trade bills give the order to pay a debt and therefore secure your transactions in the event of a commercial dispute (currency law). The international bank check makes it possible to limit unpaid bills because the banking establishment approves the issuance of the check.
Involving the bank in the transaction gives you more assurance. In this, documentary credit or remittance are also two popular forms of payment since they involve the seller’s bank, but also that of the buyer, and their implementation meets uniform rules in all countries.
What Are The Regulations To Follow?
But managing your payments well also involves controlling the exchange risk. To protect yourself from the risks of transactions in different currencies, you must find out about the exchange rates.
In general, depending on the country concerned, certain means of payment may be required and it is essential to ensure local practices. To properly secure your payments, you must therefore know the regulations, your rights, and obligations to respect. Depending on the goods, the regulations vary, and articles of law in the commercial or tax code are provided for this purpose.
What Tools Do You Rely On?
To support you in your procedures, you can approach your bank or expert organizations, or even take specific training in managing your international payments. Some banking establishments offer a support service that ensures the successful completion and settlement of your international commercial contracts by making the connection between the financial and logistics services of your company.
To limit the risks and sustain your operations, also rely on the tools at your disposal, including:
Currency hedging, to hedge your transactions against rate fluctuations.
Payment insurance can cover part of the losses, such as export credit insurance.
Indian Customs can improve and streamline cargo security through the authorization of an Authorized Economic Operator (AEO). This is a voluntary program.