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International charges and payments


When we talk about media collection internationally, we can think of transactions and complex operations but they are just an extension of domestic or internal trade. To this, we have to add the differences in languages, laws, geographical distances, etc.

For international  operations of purchase-sale, it is clear that determining a price is necessary, but it’s not the only factor, because there are involved other like terms of delivery and quality of goods, and especially, security and coverage of payment.

A charging of exports through post-delivery of merchandise transfer, I think it has a very high commercial risk for the exporter, so I appreciate that there may be other instrument covering the non-payment and it can be a Bank Guarantee, some coverage of Credit Insurance, etc.

Cofundi, at the high number of transboundary invoices that often fail to pay, has a policy of ensuring all transactions with Credit and Caution.

Environmental risk of charge

In attempting to carry out such purchase and sale operations, taking into account some reasons to analyze which is the best way to make the payment:

1) The trust level with the buyer.

2) Analyze whether the seller is more interested to sell or the buyer to buy.

3) The security and / or speed with which the operation is performed.

4) The solvency of the buyer.

5) The solvency of the buyer’s country, what is called country risk.

6) The financial costs which represent for both parties.

7) Not knowing if there are alternative means of payment.

Charges means

The means of payment are classified as Simple and Documentary

Payment methods



Personalized Checks Acct. Cte., Notes, Payment Commitments

Cashier’s Checks

Remittances Simple: “With Paper” (Letters, receipts, etc.) and “Paperless”


Payment Order Documentary

Remittances Documentary  (Deferred Payment or Payment against Documents)

Documentary Credits

In Cofundi we only use as payment and collection the transfer; the advantages and disadvantages are described below.Source: www.camaracordoba.com

Transfer(Payment Order)

The transfer, also known as payment order, can be defined as a mandate by which the importer (who makes the purchase) gives to his financial institution to send a specific amount of money to the account that the exporter (which is who makes the sale) keeps in his cash / bank. All this, within agreed terms between the parties.

In return, the exporter makes the direct shipment of the goods and the documents to the importer.




Fastest and safest method



Method with a lower financial cost

Total risk in terms of merchandise and charge if the charge is not anticipated


Unnecessary delays by intermediaries and routes of shipment badly specified




Payment for goods or services is at him discretion of will

Only in prepayments without back guarantee

Source: www.camaracordoba.com


Both the choice of means of payment like insurance it is important to deal with the minimum possible risk transactions, both domestically and internationally.

One of the main problems caused by non-payment is the lack of liquidity by companies. Levels of insolvency is one of the factors that has increased after the crisis, harming trade relations for the loss of trust.

Mari Cruz Martín