Things to be aware of when trading overseas

In export transactions, one important point that can reduce many of the risks is to have the other party pay the fee before sending the item.

It is very important to ask the other party to pay in advance, even if it is unlikely to happen.

The dividing line between prepayment and deferred payment is before and after loading. It is common to see people following the other party's request to "pay once we have confirmed a copy of the BL (bill of lading)," but the BL can only be issued after the ship has departed, so this would be deferred payment.

I think a lot of trouble can be avoided if you adopt a stance such as "only do business on prepayment basis."

The last thing you want to happen is to send something and then not receive any money.

There are also cases where items are sent and then the recipient gives various excuses and does not pay.

Even if you have a contract, it is not realistic to get your money back, considering litigation costs, etc.

If you have a transaction where prepayment is difficult due to your relationship with the other party, or where you don't want to miss out even if you can pay later, why not consider using "trade insurance" for debt collection? Trade insurance is a system where insurance premiums are calculated after a credit check and country risk check of the other party, and insurance money is paid in certain cases, such as when the other party has not paid for more than three months.

Having a means of debt collection is also extremely important in exports.