Payment guide

To make sound payment decisions during contract negotiations, you need to understand payment terms, the competitive landscape, risk assessment and management, as well as hedging instruments.

Several external factors will influence your company's choice of payment terms. The importance of the customer and/or market to your business will often determine how flexible you are willing to be. The competitive landscape will also affect which party has the stronger negotiating position.

You must also consider your own financing situation to assess whether the sale is profitable and sustainable for your business. Alongside the other factors, you need a sound risk assessment and management plan when discussing payment and financing solutions. This is essential for choosing the right payment terms and risk mitigation instruments. The first section will cover this, as well as risk factors associated with international transactions.

As an exporter, you may face additional payment challenges because you are not as close to your customers as you are in your domestic market.

Trade Finance helps you turn international market opportunities into timely export sales by effectively managing identified risks in international trade.

More than 99 per cent of the market lies outside Norway, so companies with ambitious growth plans need to take a broader approach to their customer base.

Non-payment or late payment by international customers.
Political and commercial risk, as well as cultural influences.

Credit policy*:
Sets out guidelines for credit procedures and the risk profile that underpins your company's lending decisions. A sound credit policy ensures that new customers are creditworthy and that you monitor credit extended to existing customers. It should also clearly define who has the authority to approve credit and ensure the timely collection of outstanding receivables.