Foreign Buyer for My Product

Sometimes it’s difficult to know what questions to ask.  That’s why we assembled a list of the most common goals and questions to help you identify what you hope to accomplish when you have a foreign buyer of your product and how to move forward.

What do I tell the buyer in order to receive a wire transfer for payment?

If receiving payment in USD, the instructions are to “Pay USD _______ to National Penn Bank, Boyertown, PA, ABA #031308784, NPENUS3P,  Account (Account No. of National Penn Customer), Beneficiary Account Name: (Name of National Penn Customer).” If payment is to be received in another currency, please contact the International Group for settlement details.

The buyer is not willing to pay in advance. What other options are available?

Requiring that foreign buyers pay in advance will often reduce export opportunities, unless the product to be exported is unique or is being customized. The payment term matrix in the reference section of this website outlines the various risks associated with alternative payment terms which might be deemed acceptable. A more detailed comparison can always be facilitated by contacting the International Group directly.

How can I make sure I receive a letter of credit that is structured properly?

Once a letter of credit is agreed as the payment vehicle for a sale, the buyer will need to complete a letter of credit application with its local bank, which is usually a fairly lengthy and detailed request. We have found it best that the exporter pro-actively share required parameters for the letter of credit, in order to reduce the likelihood that an L/C with unacceptable terms be issued which might require costly amendments. Our Instructions to the Buyer for Issuance of a Letter of Credit can be a useful template for use in this regard. Assistance for completing this is available by calling the International Group.

Is there any way for me to provide short-term financing to my foreign buyer?

Short-term buyer financing is available from a number of sources, including bankers’ acceptance financing under a letter of credit with time drafts, or via open terms covered by foreign receivable insurance. The International Group can provide additional information to you on these options.

What additional risk arises if I invoice in a foreign currency, and how can I mitigate this?

Invoicing in foreign currency can be very useful in improving foreign sales as well as profit margins on these sales. However, it can also expose the exporter to foreign currency risk. National Penn can work with exporters to manage this risk through effective use of FX forward contracts of various structures. Please contact the International Group to discuss these alternatives in more detail.  

I need to provide warranty support for my sale; what are the options?

Warranty support for products exported to foreign buyers are usually supported in one of two ways. The most common is for issuance of a standby letter of credit to the ultimate buyer which allows them to draw in the event that agreed warranty terms are not met. The other option might be for the seller to accept payment of a reduced amount at time of shipment, with some retained amount paid only after the warranty period expires and warranty terms are met. The latter arrangement can prove more challenging for the exporter to effectively manage, so is not as common.

Contact our International Trade team at 888.461.1864 or

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