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Payment in durian export trade
Fresh goods have a short shelf life, so payment has to balance the seller's peace of mind with the buyer's protection. Below are common methods and points to weigh.
Common methods
- A partial deposit, with the balance paid after acceptance or on arrival.
- Bank transfer per shipment or on an agreed cycle.
- Letter of credit (L/C): a bank guarantees payment when the documents comply, often used for large values or new partners.
- A mix: a deposit at the start of the season, payment per shipment and a final settlement at the end.
Points to agree
- The payment currency and how exchange-rate movements are handled.
- Payment milestones tied to a specific event: after acceptance, when goods clear the border or when delivered at the receiving point.
- The basis for determining quantity and quality for payment (at the packing site or at the receiving point).
- How non-conforming goods are handled: price reduction, return or rejection.
Common risks
- Paying everything before acceptance without any protection mechanism.
- Quality disputes because acceptance criteria are unclear.
- Late payment interrupting the cash flow used to buy from growers.
- Receiving-account details that do not match the contracting party.
Notes
The payment method and currency must comply with bank rules and the laws of both countries. State them clearly in the contract and consult a bank or specialist where needed.
This article is general information, not financial or legal advice.
Frequently asked questions
Should I pay everything up front?
Usually not, unless a protection mechanism exists. Many parties choose a partial deposit and tie the balance to an agreed acceptance milestone.
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