An exporter will customarily quote a price to a foreign customer including an INCOTERM which indicates what is included in a price. These are internationally recognized abbreviations such as EXW (price from the factory), FOB (free on board), FCA (free carrier) and DDP (delivery duty paid). INCOTERMs are updated every ten years with the latest update taking effect 1st January 2020.
Logistics professionals often recommend sellers use INCOTERMS such as CPT, CIP, CFR, CIF, FCA, DAP or DDP to maintain control over the shipment of their goods. It is for this reason that sellers should avoid EXW where they have zero control over how or where the goods are shipped but are still legally responsible for proper U.S. export documentation and clearance even though EXW indicates the buyer is responsible for processing this.
U.S. International Trade Administration Trade Finance Guide explains the basics of finance options.
80% of international trade is transacted by Open Account where the exporter offers payment terms of 30 to 90 days to established customers. Obtaining Export Credit Insurance, also known as Trade Credit Insurance, gives a U.S. exporter the flexibility to offer open account credit terms which are attractive to potential foreign customers.
Documentary Collection is an option if you are not offering your buyer open account terms and they have a good credit/payment history.
Letters of Credit are one-time documents initiated by a foreign customer which specifies that his or her bank will pay the exporter the agreed amount of the transaction if all of the specified conditions are met. They are very secure but expensive due to processing fees.
Forfaiting gives the exporter the option to sell the outstanding debt on the receivables at a discount to a financial institution, which assumes the risk of the debt, in order to receive immediate payment.
Export Credit Insurance has many applications: it can mitigate the risk of non-payment by a foreign customer and also allows U.S. exporters to offer open account payments terms to foreign buyers.
Export credit insurance issued by the Export-Import Bank is backed by the weight of the U.S. Government whose influence can be used to expedite collections from delinquent foreign buyers.
U.S. Commercial Service International Company Profiles are fee-based, thorough background reports, including credit checks, on foreign buyers.
Negotiate an Export Sale explains choosing the terms of sale, selecting the payment method, and calculating taxes and tariffs.