Foreign trade customers say they will pay, but never pay? A 20-year veteran’s practical guide to collecting payments (with Chinese and English tips)

In foreign trade business, we often encounter situations where customers do not pay. For example, after the quotation, they say they are satisfied and will pay but they delay payment. Another example is that samples have been sent but they still do not pay. What's worse, the goods have been sent but the customer still does not pay with various excuses. In this case, how can we collect payment efficiently without annoying the customer? This article will teach you!

1. Diagnosis of causes: The key is to prescribe the right medicine

1. Dissatisfaction with products or services

Countermeasure : Proactively verify the authenticity of the problem to avoid customers making excuses.

Talking skills:

"We noticed you haven't proceeded with payment. Could you share if there are any concerns about our product/service? We're ready to solve them immediately."

2. Tight capital chain

Cracking key :

Check credit information through AB customer global search , if true, it can be extended;

If the default is malicious, The "spear attack shield" strategy:

"We understand you're expecting large orders soon. Could you allocate part of that revenue to settle our invoice? This ensures uninterrupted supply for your new project."

(Chinese: "I know that your company is about to receive a large order. Can you transfer part of the payment from it? This can ensure the stability of the supply chain for your new project.")

3. Payment process is slow

Countermeasure : Ask customers to provide screenshots of the approval progress and identify bottlenecks.

Talking skills:

"To speed up the process, could you share a screenshot of the current approval status? We'll follow up with the relevant department directly."
(Chinese: "Can you provide a screenshot of the current approval progress? We will directly contact the relevant departments to move forward.")

4. Exchange rate game

Countermeasures : Set a payment window and charge exchange rate loss fees if the payment is overdue ( case).

Talking skills:
"Due to currency fluctuation risks, payments after [date] will incur a 1.5% exchange loss fee. We recommend completing payment by [date] to avoid this charge."
(Chinese: "Due to the risk of exchange rate fluctuations, payments made after [date] will incur a 1.5% exchange rate loss fee. It is recommended that payment be completed before [date].")

2. Four-level collection tactics: from gentle to strong

▶ The first stage: reminder collection (within 3 days of overdue payment)

Skill : The "Law of Presence" + The guiding words

Talking skills:

"We've reserved production capacity for your order. To meet the delivery deadline, please advise when we can expect your payment confirmation."
(Chinese: "We have reserved capacity for your order. To ensure timely delivery, please inform us of your estimated payment date.")

▶ Phase 2: Apply pressure without breaking up (1 week overdue)

Combination punch :

1. Create a sense of scarcity : "Inventory Talk"

"Only 3 units left in stock. If not paid by [date], reopening production will incur a $500 machine setup fee."
(Chinese: "Only 3 units left in stock. If payment is not made by [date], a $500 damage fee will be charged for restarting the machine.")

2. Leverage customer cases : Benchmark customer pressure method

"Our client [well-known company] paid within 24 hours to secure stock. We suggest you do the same to avoid delays."
(Chinese: "The customer [well-known company] paid within 24 hours to lock in inventory. We recommend that you follow suit to avoid delays.")

▶ Phase 3: Ultimatum (2 weeks overdue)

Operation points :

• Send a formal letter Attached payment screenshot template requires filling in ;
• Simultaneously inform production plan adjustments ( stage speech).

Talking skills:
"Production for your order will be postponed to next month if payment isn't received by [date]. Attached is a remittance template for quick processing."
(Chinese: "If payment is not received by [date], order production will be postponed to next month. Attached is a remittance template for quick processing.")

▶ Stage 4: Stop loss action (1 month overdue)

Three ways :

Outsourcing collection : It is recommended to entrust a professional institution if the payment is overdue for 3 months;

Legal Deterrence : "Intimidation" (use with caution);

Suspension of cooperation : The claim case will be terminated after the penalty is collected.

3. High-voltage lines: 3 minefields that you must not step on when collecting payments

1. Avoid weekend collection : European and American customers are extremely disgusted with discussing business matters on weekends;

2. Avoid frequent bombing : Collections should be collected ≤ 2 times per week, and new reasons should be given each time;

3. Disable emotional kidnapping ( The "torture tactic" is only for old customers): Telling new customers that "the raw materials are ready" is easy to be seen through.

IV. Counterattack case: Three tricks of veteran foreign trade

Case background : Turkish customer owed $80,000 in payment, using the excuse of "different US dollar exchange rates" .

1. Step 1 : Provide exchange rate hedging solutions

   "Lock the current rate by paying 50% now. The balance can be paid at the future rate if it drops."
   (Chinese: "Pay 50% to lock in the current exchange rate. If the US dollar falls later, the balance will be settled at the new exchange rate.")

2. The second trick : make concessions in exchange for on-time payment

   3% discount on the payment, but full payment is required within 48 hours ( Interest binding);

3. Tip 3 : Join forces with your customers’ competitors

   It was revealed that "a German buyer wanted to purchase the same batch of goods at a high price" and received a payment slip on the same day ( Client case method).

Result : Full payment was collected within 7 days, the customer appreciated the concession and renewed the order for $200,000.

Chinese and English Talk Toolbox (Save Now!)

The Ultimate Heart Method : The essence of debt collection is the redistribution of benefits. The real solution to the payment problem = a plan to help customers make money/save money + an action logic that cannot be refused.

Immediate Action Checklist :

1. Check customer credit (recommended: AB customer global search );

2. Embed speech templates in emails;

3. Set up a phased collection schedule.