Protect your business with the right payment methods. From Letters of Credit to escrow, understand how to get paid securely in international trade.
Bank guarantees payment when documents meeting specified conditions are presented. Most secure for both parties.
Bank handles document exchange. D/P (Documents against Payment) or D/A (Documents against Acceptance).
Buyer pays before shipment, typically via bank transfer (T/T). Full or partial advance.
Buyer pays after receiving goods, typically Net 30/60/90 days. Based on trust.
Payment held by neutral third party until conditions are met. Gloseg provides escrow for all transactions.
Exchange rate fluctuations can significantly impact your profit margins. Here are strategies to protect yourself:
Match currency of costs with currency of revenues
Example: If you sell in USD, try to source materials priced in USD
Lock in exchange rate for future transaction with your bank
Example: Agree today to exchange $100,000 at 5.50 GHS/USD in 90 days
Include clause in contract adjusting price if exchange rate changes beyond threshold
Example: Price adjusts if USD/GHS moves more than 5% from signing date
Quote and receive payment in USD, EUR, or GBP
Example: Always quote FOB Lagos in USD regardless of buyer location
All transactions on Gloseg are protected by our escrow system. Buyer funds are held securely until delivery is confirmed, protecting both parties and enabling trust in new business relationships.
