This article was checked in September 2026. Rules and figures change, so confirm them before you act. We are not lawyers or tax advisers.
The short answer
| Question | Answer |
|---|---|
| What is the safest term? | Advance payment, or a confirmed letter of credit. |
| When is open account OK? | Only for checked buyers with a clean record, ideally with credit insurance. |
| What are the biggest risks? | Fake buyers, spoofed emails and large first orders on credit. |
| Does Pakistan require anything? | Yes. Export money must come to your bank in Pakistan within the State Bank of Pakistan time limit. |
Key takeaways
- Start new buyers on advance payment or a letter of credit.
- Check every new buyer's company, address and records.
- Confirm bank detail changes by phone, never by email alone.
- Match your payment terms to your export declaration in PSW.
Payment terms, from safest to riskiest
| Term | How it works | Your risk |
|---|---|---|
| Advance payment | Buyer pays before you ship | Lowest |
| Part advance | Buyer pays part up front, the rest before documents are released | Low |
| Letter of credit | Buyer's bank pays when you present correct shipping documents | Low, if documents are correct |
| Documentary collection | Banks exchange documents for payment or a promise to pay | Medium |
| Open account | You ship and the buyer pays later, often in 30 to 90 days | Highest |
What to use for a new buyer
For a first order, ask for an advance payment or a part advance. A common deal is 30 percent up front and the balance before the original bill of lading is released. For large orders, a letter of credit confirmed by a bank you trust is safer.
When to offer open account
Only after several paid orders, and only to buyers with a clean record. Trade credit insurance can protect open account sales if a buyer fails to pay.
Scams to watch for
- A buyer who changes bank details by email. Always confirm bank changes by phone using a number you already know.
- A buyer who overpays and asks you to send back the difference
- A large first order with a rush deadline and no advance
- Free email addresses and websites that were set up recently
Check the buyer first
Before you ship on anything but advance terms, check that the buyer is real and able to pay. Our buyer vetting report covers company records, address, credit and public records.
If a buyer does not pay
Act fast. Send a written reminder, then a formal demand. US collection agencies can help for a share of what they recover. Legal action is possible but slow and costly across borders, which is why prevention matters most.
State Bank of Pakistan
Export money must come home under State Bank of Pakistan rules. Unpaid export bills can cause trouble with your bank, so tell your bank early if a buyer is late.
Letters of credit without surprises
A letter of credit only protects you if your documents match it exactly. Banks refuse to pay for small errors, such as a different spelling of the buyer's name, a late shipment date or a missing certificate. Before you accept a letter of credit, read every condition and make sure you can meet it.
- Check the latest shipment date and the expiry date
- Match the goods description, quantity and value to your invoice word for word
- Confirm which documents are needed and who issues them
- Ask for the letter of credit to be confirmed by a bank you trust
Pakistani rules for export payments
| Rule | What it means for you | Who is in charge |
|---|---|---|
| Payment channel | Export payments must come through your bank in Pakistan, against the export declaration you filed in PSW. | State Bank of Pakistan and PSW |
| Time limit | Export money must reach Pakistan within the State Bank of Pakistan time limit. Ask your bank for the current limit. | State Bank of Pakistan |
| Agent commission | Commission to a foreign agent must be shown correctly and paid through your bank. | Your bank |
Want us to handle this for you?
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Common questions
What is the safest way to get paid by a new US buyer?
Advance payment, or a part advance with the balance paid before the bill of lading is released. For large orders, a confirmed letter of credit.
Should I give US buyers 60 day payment terms?
Only after several paid orders and a clean buyer check. Trade credit insurance can protect you.
What should I do if a buyer changes bank details by email?
Do not pay or ship until you confirm the change by phone using a number you already know. Email bank changes are a common scam.
Can I get export credit insurance in Pakistan?
Ask your bank and the EXIM Bank of Pakistan, which offers trade credit insurance for exporters.
Can my buyer pay my US company?
Yes, but the goods are still exported from Pakistan in your Pakistani company's name, so your US company must pay your Pakistani company within the State Bank time limit.