Choosing the payment method

The payment method is chosen and formed so that it satisfies both partners. If you are the seller of the goods, you will probably want to get payment before delivery. Then again, as the buyer you would like to get possession of the goods before you pay them.

The following affect the choice of payment method:

  • confidence between the trading partners
  • competition
  • traditional trade practices
  • willingness to eliminate risks related to the buyer's country
  • local legislation
  • need for financing
  • how rapidly and reliably you can receive the payment

The most common methods of payment in foreign trading are:

  • payment order
  • foreign collection
  • documentary credit

Standby documentary credit Opens new window

You can manage the risks related to foreign trading with a standby documentary credit.

Read more about standby documentary credit Opens new window

Foreign currency payment

Payment instruction is the easiest way for your company to receive and make foreign currency payments overseas or to other Finnish banks.

Read more about foreign currency payment