Our own experience shows we have had more bad payers from our domestic market than from overseas. Thankfully the numbers are very small, but the message is a powerful one. While it is natural for people to trust what is pshycologically close and mistrust what is pshycologically distant, there are as many dangers close to home as there are elsewhere in the world.
There are many tools available to help companies minimise the risk of exposure in international markets. Match the terms of payment you offer to suit the perceived degree of risk in dealing with clients, new and old. These can be amended according to performance, as we did many years ago with a Turkish client. Our terms started with advance payment only, but as the relationship developed we were able to offer more flexible terms in order to generate and expand business opportunities. There are notable exceptions, but as a general rule, if your Insurers are not happy with a business risk, then neither should you be!
