Payment scheme
for a foreign trade deal · advance, L/C, agency payment — built around your contract
The payment scheme of a trade deal decides who puts money at risk and for how long it is tied up: 100% advance to a new supplier, balance against a B/L copy or a letter of credit mean different risks and a different load on working capital. We choose the import payment scheme for the specific contract, goods and supplier.
The scheme reflects the Incoterms rule, Law 173-FZ and bank requirements, and the full schedule of payments — supplier, freight, duties and import VAT at customs. We do not offer schemes to circumvent restrictions: only transparent settlements backed by documents.
Specification
Specification · Deal payment scheme. Standard terms · scope and cost are confirmed per deal
Service
- Deliverable
- 2–3 scheme options with payment schedule and risks
- For whom
- importers before signing a contract or a new shipment
- Options
- support in executing the scheme
Terms
- Timing
- usually 3–7 business days
- Input
- draft contract, PI, supplier details
- Currency
- CNY, USD, AED, etc. — to suit the counterparty
Process
- Analysis
- deal, supplier, Incoterms, working capital
- Design
- instrument, currency, schedule
- Outcome
- payment terms for the contract
Price
- Base
- quoted per deal
- Extras
- execution support — on request
Service flow
- 01
Deal review
We review the deal: goods, amount, new or established supplier, Incoterms rule, production and delivery times, your working capital.
1–2 days - 02
Scheme options
We prepare 2–3 options: advance and balance, L/C, documentary collection, agency payment; the currency and schedule of all payments — supplier, freight, customs. Risks and costs for each.
2–3 days - 03
Compliance check
We check the chosen scheme against Law 173-FZ (UNK, performance deadlines), bank requirements and restrictions applicable to the goods and counterparty.
1–2 days - 04
Contract wording
We propose wording for the contract's payment section: amounts and dates, links to documents (B/L copy, telex release), currency clause. Your lawyer approves the final legal text.
1–3 days - 05
Execution
Optionally we run the execution: payments to the supplier and for freight, document control and a final deal report.
per deal schedule
Problems
100% advance to a new supplier: the goods are late, and under Law 173-FZ the importer must ensure import of the goods or return of the advance within the contract terms.
A partial advance and the balance against a B/L copy with release control, or a letter of credit; realistic delivery dates in the contract.
A cash gap: the supplier's balance, freight, duties and import VAT all fall in the same few weeks.
We build a schedule of all deal payments before the contract is signed and fit the payment terms to your cash flow.
The contract's payment section ignores currency control: no deadlines, unclear currency, payee different from the seller — the bank raises questions.
We review the payment section before signing and suggest wording the bank will understand.
Documents
The documents that record the payment scheme. The Incoterms rule determines when risk passes, and the advance-to-balance split is built around it.
Incoterms
- EXW / FCA
- risk passes early — limit the advance; shipment control is yours
- FOB
- balance often paid against a B/L copy, release after payment
- CIF / DAP
- the seller carries costs longer — and your cash gap until receipt is longer too
Documents
- Contract
- payment section: amounts, dates, instrument, currency, currency clause
- Specification
- goods, quantity, price, delivery term and dates per lot
- PI / invoice
- basis for the advance and the balance
- Payment schedule
- supplier, freight, customs payments — by date
- UNK
- registration of the import contract — for RUB 3 m and above
FAQ
There is no universal scheme. With an established supplier a common arrangement is 30% advance and 70% before shipment or against a B/L copy. With a new supplier or a large amount it is wiser to reduce the advance, tie the balance to documents or use a letter of credit.
It depends on trust in the counterparty, deal size and delivery term. The earlier risk passes to you under Incoterms and the less control you have over shipment, the smaller the advance should be. The aim is a balance where both sides' risk is acceptable and your working capital is not tied up for long.
Incoterms sets when risk passes and which costs the seller bears; the payment scheme sets when and against what you pay. Under FOB, if the balance is paid against a B/L copy and release follows payment, the goods don't reach the buyer without payment and the money doesn't reach the seller without shipment.
Under Art. 19 of Law 173-FZ the importer must ensure import of the paid goods or return of the advance within the terms set in the contract. So delivery dates in the contract must be realistic, and a contract of RUB 3 million equivalent or more is registered with the bank (UNK).
Yes, as a compliance factor: we check whether the goods, counterparty or banks fall under restrictions that could prevent the deal from being performed, and take bank requirements into account. We do not design schemes aimed at circumventing restrictions — if a deal cannot be done transparently, we will say so.
The right scheme reduces the risk of non-payment and non-delivery, saves on the cost of money and fees, and heads off the bank's currency-control questions. It is cheaper to think it through before signing than to fix it with addenda once the money has gone.