Financial Management
Payment methods for sales in Italy
The following payment systems are commonly used in the national trade in the stone sector:
- Advance payment of the total amount
- Advance payment of a deposit and deferred balance (see methods below))
- Deferred payment against Draft or Title as a guarantee
- Deferred payment with Bank Receipt
- Deferred payment by bank transfer
Payment methods for foreign sales
In international trade in the stone sector, the following payment systems are commonly used:
- Advance payment of the total amount
- Advance payment of a deposit and deferred balance (see methods below)
- Deferred payment by Letter of Credit
- Deferred payment against sight documents (called “CAD AT SIGHT”): it is understood that the payment takes place through the supplier’s bank which presents the set of documents necessary for customs clearance to the customer’s bank
- In special cases, deferred payment is granted until the vessel arrives at the port of destination.
- Deferred payment by deferred International Bank Transfer upon presentation of documents: in this case the customer can collect the documents and the customer’s bank keeps track of the payment, making the customer responsible to a certain extent in this sense: however, the payment cannot be considered guaranteed in the should the customer refuse to pay upon expiry, his bank would become aware of the fact but could not exercise coercive action.
Credit granting
In general, credit is granted only to customers with an important history of purchases made with advance payment and in any case, it is considered essential to honor the deadlines in the case of deferred credit.
Credit insurance is gaining increasing acceptance, which allows companies deemed worthy to obtain lines of credit from the supplier.
