Commercial payment terms work best when the evidence required for payment matches the actual logistics process.
Start with the facts
Compare advance payment, open account, documentary collection and letters of credit against counterparty risk and operational capacity.
Build the operating plan
For any document-based instrument, review names, dates, descriptions, quantities and shipment conditions before dispatch. Small discrepancies can delay payment.
Validate the handoffs
Agree who prepares, verifies and submits each document and establish time to correct errors.
Close the loop
Banks and professional advisers should confirm instrument wording and jurisdiction-specific obligations.
This guide is general information. Requirements and commercial conditions vary by jurisdiction, product and date. Confirm a live transaction with the relevant licensed professionals.
Shipment readiness checklist →
Landed-cost planner →
The customs desk →