FOB vs CIF: A Practical Guide

When clients request O/A terms, take precautions. Conduct a credit check, buy export credit insurance, set a credit limit, reconcile regularly. O/A can work but only with proper controls. One bad debt wipes out months of profit.

L/C document checking is a technical skill. Common discrepancies: invoice exceeds L/C amount, shipment after deadline, inconsistencies between documents. Any discrepancy can trigger bank refusal. Check meticulously.

Currency fluctuation impacts your margin. An order from quote to payment can take 2-3 months. A 5% rate move can eliminate your profit. Hedge with forward contracts or include fluctuation clauses.

Cross-border payment options have expanded. T/T remains most common. L/C dominates large deals. New platforms like PingPong offer lower fees and faster settlement. Consider fees, speed, and client preference.