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1. pop232
   Member

   Reputation:7

    

   Question- Should I create a different credit application for customer we do business with oversees/ in Canada? I was told that the terms and conditions on my US credit application would not apply to either the Canadian / Korean based customer. Suggestion or could you send me some examples via email to: terrie@popchips.com.

   Posted 1 year ago #

2. Michael Dennis
   Member

   Reputation:173

    

   Yes, I think that it is a good idea for you to tweak your credit app for Canadian applicants. I will send you an example via email for Canada. Sorry, I cannot help with a credit app for Korea

   Best

   Michael C. Dennis

   Posted 1 year ago #

3. F Scott Wilson
   Member

   Reputation:267

    

   For companies outside North America, I would strongly suggest some sort of Irrevocable Letter of Credit, either instead of or as security for an open account. This would be particularly true of Asian countries, which have a tendency to negotiate *after* the fact of the sale for more favorable terms.

   Posted 1 year ago #

4. EricLeet
   Member

   Reputation:4

    

   We sell into Latin America, SE Asia and the Middle East and sometimes a customer will complete our standard credit application and sometimes all we get is their bank and trade reference sheet. In some respects I'd be more worried about not getting a signed credit application from a domestic account than I would from an international account. In my 20 years of doing this, I've seen more bad debt from domestic accounts than I've ever seen with international accounts. I believe part of the reason is cultural. We sell on open account to Singapore, China, the UAE, Latin America and the Middle East. I would sell on LOC if I had to, but we generally sell to the number 1 or 2 player in the region so open terms works for us. While I have seem some "after the fact" disputes it generally (in my experience) stems from not asking the right questions up front or not complying with their T&C, to the letter. I think this is more of a cultural thing than poor business practices. Generally internatinal consumers like US manufactured goods so once a market is established the importer gets easier to work with. But you can't treat everyone as if they were in the US.

   Posted 1 year ago #

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