Securing Export Payment : Particularly with Focus on China

Sammanfattning: This thesis deals with export payment. Different payment methods that can be used in order to receive and secure payment when conducting international trade are analysed, and relevant risks and problems are examined. Particular focus is given to export trade with China. International trade offers great possibilities for companies, but also risks. There are several risks that should be taken into consideration, for instance the political risk, the exchange risk and the commercial risk. The commercial risk is the seller’s risk of non-payment or late payment and the buyer’s risk of non-delivery or faulty delivery Over the last decades the Chinese market has gone through considerable changes and today it is one of the world’s most important markets. The commercial risk is sometimes feared when doing business in China. This is because statements have been made claiming that Chinese buyers are somewhat untrustworthy payers. Payment is an essential part of all trade transactions. There are a number of payment methods that can be used in order to receive and secure international payment. Which payment method that should be used depends on the circumstances of the transaction. The documentary credit is a frequently used payment method in interna-tional trade. It offers the exporter security of payment because at least one bank adds its promises to pay.