What negotiation tools can help you secure better payment terms?

Estudar o seu comprador potencial é essencial para o desenvolvimento da negocia??o e uma futura parceria comercial. Tentar entender o posicionamento da contraparte no país alvo é fundamental para ver se existe match. Uma dica importante é avaliar outras marcas com o possível comprador já trabalha.

The best method of payment is Letter of Credit. This will keep the both parties in win-win situation. One can add confirmation to LC for further more security. But we need to keep in mind about credibility of applicant's country as well. Depend on Credit bureaus report upon country/bank/applicant's credibility, shipper need to take a call on payment terms. If required, shipper should insist for 100% payment in advance & should be ready to leave the order to reduce the risk w.r.t. payment

There is another way to get information of your counterpart, that is let your bank check if they can negociate your dossier of the transaction. They may check the history of the supplier/buyer with other parties in this bank, anh show you how many transactions that completed and paid at due date as one of the credit conditions. Sometimes, you can get the method of payment that the buyer/supplier used, such as collection or letter of credit.

Information is power , Investigate your service providers or buyers financial stability, industry reputation, and payment preferences. Having more knowledge on your counterpart will definitely provide advantage when negotiating terms .

The issue can be resolve through use of financial advisor and institution. Involvement may support the cost of fraud, insolvency, bankruptcy or any hidden terms that can manipulate ones condition for themselves.

Show how working together benefits both sides in the long run. Highlight how changes in payment terms make the partnership stronger and more profitable. These discussions, based on trust and common goals, lead to better business relationships.

A necessidade de se reinventar e criar novas metodologias, abordagens e processos s?o essenciais para o sucesso nas opera??es logísticas que s?o altamente voláteis e Imprevisíveis. Adaptar-se a esse meio, ter uma estratégia clara e assertiva certamente será um grande diferencial.

BATNA, or Best Alternative to a Negotiated Agreement, acts as your safety net, crucial for profitable deals and maximizing business value. In negotiations, clients often expect concessions like discounts or trial periods. For sellers, accepting all client requests isn't ideal. It's your second option, ensuring you don't compromise too much. Concessions aren't always monetary; that's where BATNA's importance shines. It's the proposal that benefits your company, arising from consensus with your team. As a negotiator, your role is to guide the client to accept the best possible alternative, ensuring they feel they gain additional value. BATNA is a vital driver for customer success. Remember, revealing your BATNA wisely is key in negotiations.

Example: An importer with a newly established business had limited credit history. To secure better payment terms with their logistics agent, they provided a personal guarantee. This commitment meant that the importer personally guaranteed payment even if the business faced financial challenges. This demonstrated their commitment to meeting obligations, which helped build trust with the logistics agent and negotiate more favorable payment terms. Downside: Offering a personal guarantee for better payment terms can put your personal assets and credit at risk if the business struggles financially. However this shows how relationships are extremely important in this negotiation.

However, it is not always necessary to get a secured payment terms if you have another priority. Use a credit solution to make your negociation conditions more flexible. For example, you are an exporter, and your bank can offer a negociation on the collection. You can offer the importer to pay on sight of document i/o advance payment, to negociate another condition.