1. What are the typical payment terms when importing products?
Payment terms can vary depending on the agreement between the importer and exporter. Common payment terms are Bank Telegraphic Transfers (T/T) and Letters of Credit (LC).
2. Do Exporters typically require a down payment or deposit before shipment?
Exporters may require 100% payment, some down payment or deposit before shipment. The amount and terms of the deposit are usually negotiated between the parties.
3. Can I negotiate payment terms with Exporters?
Yes, you can negotiate payment terms with Exporters based on factors such as the volume of the order, the relationship between the importer and exporter, and market conditions.
4. What is a Letter of Credit (LC), and how does it work when importing?
A Letter of Credit is a financial instrument issued by a bank on behalf of the buyer (importer) to guarantee payment to the seller (exporter) upon presentation of compliant shipping documents. It provides security for both parties in international trade transactions.
5. Do Kenyan Exporters accept payment in foreign currencies?
Yes, many Kenyan Exporters are open to accepting payment in foreign currencies, especially commonly used currencies like the US dollar (USD), Euro (EUR), British pound (GBP), and others. However, it’s essential to clarify payment currency preferences with the exporter before finalizing the transaction to avoid misunderstandings or complications. Additionally, currency exchange rates may impact the final cost of the imported goods.