Good preparation reduces surprises. Before agreeing to an international transaction, work through the points below.
Know your counterparty
- Confirm the legal name, registration and address of the other party.
- Seek references or trade history where possible.
- Be cautious of any deal that depends on urgency or secrecy.
Agree clear terms
- Product specifications, quantity and quality standards.
- Price, currency and payment terms.
- Delivery terms, such as the Incoterms rule being used.
- What happens if goods are late, damaged or rejected.
Check the rules
Import and export licences, tariffs, foreign-exchange rules and sanctions screening vary between countries. Confirm the requirements with the relevant authorities or a qualified adviser before shipping.
Plan the money
Work out when you will pay, when you will be paid, and what funding or payment-security tool, if any, bridges the difference.
