All your export marketing activities will be in vain if you do not get paid. To reduce this risk, ensure you complete due diligence on any company with which you enter into an agreement. Fully check their credentials, seek customer references and conduct company background searches through organisations such as Dun & Bradstreet to confirm that all is as it seems.

You should also consider supplementary background checks through local networks in the market that can provide further validation that your intended partner is bona fide. Again, Austrade can provide referrals to companies that can conduct these investigations and Austrade may also be able to provide you with some information in this regard. It is important to note that while other parties can provide background information due diligence is your responsibility as the seller and the decision on which customer and/or partner to select is your responsibility.

Agreements with customers and partners should clearly spell out any payment conditions, including penalties for late payment. Requiring deposits up-front or progress payments are generally acceptable practices in the IT industry. Your legal counsel should prepare any agreements governing the payment of licence fees or royalties.

You may set up your website to receive online payments via credit card. This is a good way to ensure payment before shipment. However, even though you may price your products in a local currency, overseas buyers can be confused by the Australian dollar amounts on their credit card statements.