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Common Reasons for International Customer Payment Default
Some of the more common reasons for payment default by foreign buyers include:
- Cash flow problems
- A lack of availability of U.S. dollars with which to make payment
- Customer insolvency
- Changing economic conditions in the buyer's country
- Changing government regulations in the buyer's country
- A significant change in the relative values of the two countries making the product your company exported far more expensive to the buyer
- War, or civil unrest in the buyer's country
- Seizure of the buyer's assets by the government
- Embargoes and trade sanctions
© 2011 by Michael C. Dennis. All Rights Reserved. Mr. Dennis is the author of "1001 Collection Tools and Tips" and can be reached by email at mcdennis13@yahoo.com