Building solid relationships is the key!

by Tekle Sebhatu

Question:

What do you think is the safest payment method and why?

Answer:

Most often it is not the paymnet method that becomes an issue in a transaction. Rather, it is the lack of due diligence on the part of the buyer or the seller that creates complication. All methods of payments (open account, advance payment, consignment, documentary collection and letter of credit) have proven to be effective mechanisms for decades. You will choose one of these payment methods, depending on your risk tolerance and the relationship that you have with the seller or buyer. For example, if you are the buyer and agreed on advanced payment through Western Union or TT, you will pay the seller in advance. Therefore, you will be taking a huge risk if you do not have a good relationship with the seller. I suggest that you focus on creating a solid relationship with your seller or buyer. Payment methods are only mechanisms to help you complete successful transactions.