Want to Be a Direct Importer

2. Negotiate the payment type. Whom you’re paying often will play a big role in the required type of payment (e.g., net terms, letter of credit [LC], wire transfer). The longer you work with a company, the more relaxed this process will become.

In the beginning, you may be required to secure your payment with an LC. If you and a vendor have no sales history, this probably is the best payment form since there’s built-in protection for both sides. Caution: LCs come with bank fees and can be quite costly.