17 Ways to Request and Accept Payment for International Exports

Payment for International Exports:You must also only agree to reasonable terms of payment – terms which are reasonable to them and also to you.

For example, prospective buyers would also be equally cautious when dealing with you.

Especially if you have no feedback and no previous sales history.

So if you were to start by requesting advance payment.

That would be a huge turnoff to many buyers regardless of how low your prices are.

To cross this hurdle of how to request payment AND protect yourself, you have two options:

  1. Letter of Credit:This is a document which a buyer obtains from a bank in his/her country.
  2. This letter is issued to you the seller,  and it acts as an obligation of the bank guaranteeing the buyer’s payment. It is recommended that you confirm a letter of credit by your own bank here in Nigeria.
  3. Draft Documentary/Document Against Payment (D/P)
    With this method, you will use the services of a bank to effect payment.

Payment for International Exports

Once you are satisfied, you can then you will ship the goods along with the bill of lading and a draft.

A Bill of Lading (abbreviated B/L) is like a ticket which outlines the journey of your cargo from origin to its destination.

It functions as a contract for the movement of the goods, with the fine print – the terms of the contract – frequently outlined on the back of the bill.

Payment for International Exports

It also serves as a receipt for the cargo and can act as proof of ownership of the goods being transported.

The draft is a cheque-like document that will be forwarded to your bank.

Your bank will forward the documents to the buyer’s bank and the foreign bank will collect payment from the buyer before the arrival of the goods.

If payment is not made by the buyer.

The correspondent bank will not release the bill of lading to the buyer.

And the buyer will be unable to take possession of the goods or clear customs.

Finally, getting genuine foreign buyers for your products can be a straightforward task if you follow the steps as explained.

We cannot generalize about it being difficult or simple.

It depends on the situation and the motivation, and the level of enthusiasm you have for success as an exporter.

Payment for International Exports

Additional Resources

If you have a nice and stable business in your home country.

And your growth there is limited, then it may be time to move to international markets. But how to start?

Image result for Payment for International ExportsImage result for Payment for International ExportsImage result for Payment for International Exports

1. It all starts with preparation:

Export is selling your goods in a country that you don’t know.

With a different culture and with different regulations.

The market may be better there than in your home country.

But you will still have to invest in building your network and promoting your product.

Just as you started at home.

That means that your current operations should be able to run with a bit less of your attention.

And that you can invest time and money in entering a new market.

There are also some more practical things.

Payment for International Exports

Read also: 43 Amazing Medical/food value Of Cassava to every Nigerians

Do you have your website and product documentation available in English or in other relevant languages?

Is your brand name easy to pronounce in different languages and can you handle international payments?

If your product is suitable for it, try to sell online first.

Although online sales heavily depends on the right local marketing.

It may give you an impression where your product is easily picked up.

And it helps you get get your organisation up and running for international business.

Payment for International Exports

2. Go for  Business trips and market research

In which country would your product or service be a success?

How you would need to position it, and with whom?

These insights cannot be derived from statistics or the internet.

You will have to go to the country yourself or invest in practical insight-oriented market research.

There are tools available to see how much each country imports your specific kind of goods.

What the price levels are and what the trend is.

Once you have made a selection of two or three promising countries.

It is time to have a look there yourself.

Payment for International Exports

Seealso: Top 19 Project Presentation Ideas in Nigeria

Sometimes your embassy or trade commissioner there can offer first introductions.

There may be local chambers of commerce.

Or you can hire a local consultant to fully prepare your business trip.

Especially in countries like Japan, China, Thailand or in Africa this is a necessity.

Focus your market research on things that are important to you.

Where are the niches, what is the competition, what are price levels.

Ask for interviews with potential agents or distributor, to get their view on your product.

Payment for International Exports

3. Get the distributor abroad, or direct sales

If you want to set up your distribution abroad.

You have three main options: online, through distributors, or with direct sales.

Payment for International Exports

a. Online

Online often seems to be the easiest option.

But having your product online doesn’t mean that it will sell.

You will still have to promote it.

Either through paid advertising on these platforms.

Or by investing in a social media approach.

The latter one will work better for a fashion product than for a thermo mug.

However, even with little efforts there may already be some results.

Read more about selling your products online

Payment for International Exports

Through local distributors

A distributor will buy your product in large quantities and sell it to his clients.

The more unique your product is, the easier you will get it on the shelves.

Proven functional effectiveness is the best.

If you have a new blender that automatically separates the seeds from the rest of the fruits, then that’s a clear advantage. Design is a bit more subjective.

Payment for International Exports

And if you have a product that doesn’t differ so much from the competition.

Then it will be either service, branding or price to stand out on.

Finding a distributor requires good preparation.

Purchasers of major distribution chains get numerous offers a week for new products.

So they will only spend a few minutes on your ideas.

They will not be interested in placing and promoting your product if there is no guarantee that it will sell.

So you will either need existing sales data from other countries, or a clear idea how you are going to co-promote your product.

Payment for International Exports

Read more about finding an agent or distributor

b. Direct sales to find buyers in other countries

The third way is to hire somebody locally to do your sales.

This may be useful for highly customized products, like big technical systems.

This doesn’t need a full-time employee, you can also hire somebody to represent you on part-time basis.

If you pay your representative on basis of his sales, then we are talking about an agent.

Payment for International Exports

4. Get the market entry and agreements

In all cases you will need a plan to get your sales up and running.

If you have a distributor or local staff, you may have to train them in selling your product and providing service.

Also take in mind that if you’re selling more complex products.

You may have returns because of defects.

Payment for International Exports

Be sure that you also negotiated about this part.

Which may not be so profitable for your distributor.

But which helps to you protect your brand.

The easier it is for a distributor to sell you products, the more he will do so.

Having good promotion materials, displays, demo models etc.

And having a hotline for all kind of product assistance pays off.

See also 20 Tips to Make Money @ Teen in Nigeria

Payment for International Exports

5. Establish your presence abroad

It may take a while before your investments in a new country really start to be profitable.

A good business case with projections based on market research.

Will help to determine where you have to do more.

Once you have some experience in a country.

You can also determine metrics: e.g. that every 100 website visitors lead to 1 sales transaction.

Payment for International Exports

This way you can predict the outcome of your marketing efforts and even attract financing for your growth.

In order to become successful in a new country.

You may have to do as much marketing and sales effort as you did in your home country.

And since you can’t do everything yourself this time, investments may vary from 20,000 to over 200,000 USD.

Getting international buyers for an import export business is one of the biggest challenges many entrepreneurs face.

It becomes increasingly more difficult when you’re at the start of the venture or are just trying to source international buyers for the first time.

Payment for International Exports

6. Register With Export Promotion Councils (EPC):

By registering with Export Promotion Councils.

You can stay up to date on the needs of other countries on your product line.

What companies are reaching out to them to get information on potential exporters.

And how to properly market your business in those countries.

The Nigeria Export Promotion Council (NEPC) is one you can start with.

Unlike other government agencies, they’re very responsive over the phone, especially their Lagos chapter.

Read also: 20 Current Business Moonshots in Nigeria

Payment for International Exports

7. Find Local Buyers Who Represent Foreign Companies:

For the crude oil export business, for instance.

There are a lot of buyer mandates in various countries, including Nigeria.

These individuals act on behalf of the refineries they represent all over the world, and they go out in search of genuine crude oil sellers in the country.

Instead of trying too hard to reach out to refineries to no avail.

Searching out genuine buyer mandates will enhance your crude oil brokerage business.

The same applies for every other business.

By reaching out to local representatives in your country, you can build an export link to the international buyers.

See Also: How To Find Real Crude Oil Sellers And Buyers In Nigeria

Payment for International Exports

8. Become Active On LinkedIn:

LinkedIn is the foremost global business hub that connects entrepreneurs from all over the world.

More global business deals are now concluded daily via interactions that first began on LinkedIn, making the platform highly valuable for global trade.

You can take advantage of this platform by setting up a great profile, engaging with the community, and promoting your services at the same time.

When you build a personal brand people can connect with on LinkedIn in respect to your product and service offerings.

People who need what you have to offer will reach out a lot to you.

See also: 110 Hot-Selling Products for Export Business in Nigeria

Payment for International Exports

9. Fill Orders From Local Buyers Who Export To Foreign Organizations:

Another route to take is to supplement the orders of local companies who have international customers to export products and services to.

By supplementing their operations, you can ensure they’re up to par with their supplies.

Although you remain indirectly connected to the end client.

Payment for International Exports

10. Register On International Trade Platforms:

International trade platforms like Alibaba and several others have made the global import and export business a whole lot easier.

As they have opened far more opportunities for businesses.

Who have products and are constantly looking out for importers.

That can facilitate a certain minimum transaction.

By registering your export business on Alibaba, your chances of getting international customers looking for businesses like yours to export to them, increases immediately.

See Also: Legal Requirements For An Import And Export Business in Nigeria

Payment for International Exports

11. Have An International SEO-Ready Website:

While registering on an online trading platform like Alibaba is important.

It is highly crucial that you have an international SEO-Ready website.

The advantage of this is when international companies or buyers are searching Google for businesses that can export certain products to them, your company would be easier for them to find.

If you use highly experienced SEO experts to scale up your online visibility on search engines.

You will not just improve the chances of being found easily online, but also stand a good chance to land on the first page of Google.

View also: 15 Top Unisex Business Plans in Nigeria

Payment for International Exports

12. Do Email Marketing:

Email marketing gets results, no matter how small, as long as you’re marketing to the right audience.

You could have a lead capture tool on your website, which you’d use to gather email addresses.

With every email gotten, you can send them periodic emails about your products and services.

And also include deals and promotions that could get the receiver interested.

Payment for International Exports

13. Hire Overseas Agents On Commission Basis:

You can get reliable sales agents by contacting the Chamber of Commerce.

Export Promotion Councils, and independent consultants in whichever country you intend to export products to.

Overseas sales agents will interface directly with the buyers and will always let you know their position on any potential purchase.

Payment for International Exports

14. Contact The Countries Chamber of Commerce:

As stated above, the Chambers of Commerce in several countries.

Can help you not just get sales agents, but can also help you find valuable contacts.

Reaching out to them in a bid to build a supply chain network of international buyers from their countries is a great step to take.

After which, you can go ahead to approach the suppliers you learn of and introduce your business to them.

See also: 21 Tips to Open Global Products Business in Nigeria

Payment for International Exports

15. Participate In Trade Fairs:

Engaging in trade fairs is a great way to introduce your products to international buyers.

These international companies usually visit a lot of trade fairs to see what’s new in the market, who’s selling what, and which businesses are the best options to work with.

China, for instance, is one country where trade fairs are held regularly.

People from all over the world travel to China during their trade fairs.

As it is a great time for them to find competent suppliers.

By joining trade fairs in your country, you can advertise your products to the world.

Read also: 23 Top Business Seminar Presentation Guides in Nigeria

Payment for International Exports

16. Get Import Lists From Foreign Embassies:

Most countries have state-controlled companies that import products in large quantities.

You can do a thorough research on the countries your products would be a great fit for.

And contact their embassies in your country.

Or directly reach out to them through their company’s website contact details.

To make it easier, if you can get a foreign representative with connections to help you through the process, getting a signed deal would be a whole lot easier.

See Also: How To Start A Diesel Supply Business In Nigeria: The Complete Guide

Payment for International Exports

17. Internet Marketing:

This involves the use of SEO, email marketing, social media marketing.

Pay-Per-Click advertising, and a whole lot more to boost the visibility of your business to prospective international buyers.

This is usually capital intensive and would require you have an experienced digital marketing team to help you create and execute an effective digital strategy.

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    The biggest thing about this is really that when your
    visitors get to your page, they stay there! Instantly most important is that
    you’re walking ranked higher because about this. Google LOVES pages that are strongly related
    to the search terms. Although usually applies more to sponsored links,
    it also uses this method to rank pages higher on their free results.

    Another thing to note is how the anchor text, or the words that
    is hyper linked is worth focusing on. Instead of having links that say
    “click here”, essential aim to obtain varied anchor text,
    which should be right to website is. If you can introduce some keywords a person simply
    are focusing on, the link will have a higher effect your grade.

    You want to think for example normal one who is using internet and
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