Mexico - Methods of PaymentMexico - Methods of Payment
U.S. exporters should be aware that Mexican lending rates are significantly higher than in the United States. Requiring payment either by confirmed letter of credit or cash in advance can cost U.S. exporters sales opportunities. While favorable payment terms are important, U.S. companies should consider all financing options available to be as competitive as possible. Intermittent volatility in the MXN/USD exchange rate has led to Mexican importers requesting longer payment terms as they struggle to finance their operations. When the peso drops in value, some importers under existing contracts may default on payment deadlines, paying 30 to 45 days late. Exporters are advised to protect themselves from the risk of default by obtaining foreign buyer financing or export insurance from the U.S. Export-Import Bank (see below for more information).
It can be difficult to collect from Mexican buyers in cases of non-payment. The U.S. Commercial Service in Mexico has supported U.S. companies in their efforts to obtain payment for products/equipment delivered, but it is often necessary to travel to Mexico to meet with the buyer and in many cases to hire a lawyer to handle the case.
U.S. exporters are advised to be cautious and seek counsel when negotiating contracts in Mexico. Once negotiated, be prepared for the unexpected as access to credit in Mexico is limited or costly. Moreover, 90 percent of the Mexican private sector is comprised of small or medium-sized companies, most of which have limited access to credit.
For more information, see Web Resources in this section or contact the U.S. Commercial Service in Mexico City.
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.
It can be difficult to collect from Mexican buyers in cases of non-payment. The U.S. Commercial Service in Mexico has supported U.S. companies in their efforts to obtain payment for products/equipment delivered, but it is often necessary to travel to Mexico to meet with the buyer and in many cases to hire a lawyer to handle the case.
U.S. exporters are advised to be cautious and seek counsel when negotiating contracts in Mexico. Once negotiated, be prepared for the unexpected as access to credit in Mexico is limited or costly. Moreover, 90 percent of the Mexican private sector is comprised of small or medium-sized companies, most of which have limited access to credit.
For more information, see Web Resources in this section or contact the U.S. Commercial Service in Mexico City.
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.