Discusses the most common methods of payment, such as open account, letter of credit, cash in advance, documentary collections, factoring, etc. Includes credit-rating and collection agencies in this country. Includes primary credit or charge cards used in this country.

The importance of trade finance to Hong Kong has resulted in a high level of bank efficiency in providing import payment services. Letters of credit, documentary collections and international remittance services are widely available. The risk of financing receivables can be readily evaluated via locally available credit information. Prospective U.S. exporters frequently benefit from established U.S.-Hong Kong banking relationships when determining credit risk.

The preferred method of quoting is to use the "CIF" (Cost Insurance Freight) or "C and F" (Cost and Freight) destination terms of sale in Hong Kong dollars (HK$). The U.S. dollar and other freely convertible currencies may be accepted for bids and pro forma invoicing. Terms of payment depend on the relative negotiating strength of the buyers and sellers. U.S. suppliers should seek to obtain letters of credit or sight draft terms when dealing with buyers who are not well known to them. Asking for a letter of credit is a standard business practice, and your potential customer will not generally interpret this as a sign of mistrust.

Credit Rating Agencies (CRAs) in Hong Kong such as A.M. Best Asia-Pacific Limited, CTRISKS Rating Limited, Fitch (Hong Kong) Limited, Moody’s Investors Service Hong Kong Limited, and Standard & Poor’s Hong Kong Limited, provide credit ratings on Hong Kong companies.

U.S. exporters seeking a listing of collection agencies in Hong Kong can write to the U.S. Commercial Service in Hong Kong at office.hongkong@trade.gov.

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.