To be sincere with you, no buyer will want to deal with frustrated seller or exporters of any kind.

Be informed that most international trade payment mode is letter of credit open in your favour through your bank. You don’t expect a buyer meeting you on the internet for the first time to pay you in full what you have not supplied. It happens most of the times but, not in all cases as most exporters have created bad impression in the mind of buyers round the globe in the past.

And recently they have been switching from letter of credit (LC) to document against payment (DP) due to non-performance at the seller’s side after opening of LC in their favour, but you can build your integrity to win the heart of your serious buyer for funding before supply.

At a point, when you have contract with your buyer and both parties have agreed on a term, if the contract is worth 10million for 10containers, (after you have sent sample of the commodity and the test result is positive) they will open a letter of credit line in your favour and if you do not have collateral to stand for finance through your financial house or bank.

But as a beginner, no collateral and time to look out for an investor after signing a contract, then;

Communicate with your buyer under mutual business relationship and bargain for partial shipment maybe at this point, you can successfully ship 3 containers without loan from anywhere.

Make sure you bargain for 90% payment of LC against shipping document and 10% held until final checking at the destination port.

Ship the 3containers and get paid for 90% probably, the 90% payment can push another 3containers leaving you with 20% outstanding balance from 2 batches shipment and doing this repeatedly, you can finish up your order without anybody knowing you don’t have fund for 10containers at a time go.

This kind of simple attribute will make your buyer to have a special kind of trust since you have not default or probably act like a frustrated seller with a lot of excuses.

At this stage of business transaction between both party, you can tender your terms of payment for 30% upfront and 70% cover by Letter of credit.(LC) tell them you will like to increase your batch order from 3containers to 5containers per batch. Most buyers will understand and accept your new terms and gradually you are building your company integrity.

Hint* the good aspect of building integrity is that, such company can later recommend you for another buyer because of your good relationship with the former  business client, if you talk terms with new buyer for 50% upfront, they will hardly oblige to your terms because of the company that refer you and gradually you are growing.

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