To get paid safely when selling to European customers, the principle is simple: never put yourself in the position of having shipped goods with nothing to secure payment. You can collect part or all of the money in advance, use a payment method with a bank in the middle, check your buyer carefully and put every term in writing. Or you can sell through a B2B platform so that someone else handles the collection. This article walks through each option in practical terms.
Where does the real risk lie?
For food products, the risk is not only a buyer who does not pay. Three situations come up often:
- The goods have left Vietnam, but the buyer pays late or not at all.
- The buyer disputes quality, labelling or shelf life when the goods arrive, then asks for a discount or returns the goods.
- The goods are held at customs because of missing documents, and it is unclear who bears the costs.
Food has a shelf life, so when a dispute drags on, the value of the shipment drops quickly. Agree everything before you ship, not after something goes wrong.
Common payment methods
Each method has its own strengths and weaknesses. The table gives a general overview:
| Method | Strength | Points to watch |
|---|---|---|
| Full payment in advance (bank transfer) | Safest for your cash flow | New buyers are often reluctant, especially if they do not know you yet |
| Deposit, with the balance paid before or on delivery | Shares the risk between both sides and is easier for buyers to accept | Payment milestones and the consequences of late payment must be clearly stated |
| Letter of credit (L/C) | A bank sits in the middle and pays against a set of documents | Complex procedure; a small error in the documents can lead to rejection |
| Payment after delivery (open account) | European buyers are used to it and often prefer it | You carry the most risk, so check the buyer and consider credit insurance |
The costs and conditions of L/Cs and credit insurance differ by bank and insurer. Ask your own bank directly rather than relying on figures you have heard.
Steps to get paid more safely
- Research the buyer. Check that the company really exists, how long it has been active, and that it has a valid business registration and VAT number. Your bank or a business information service can help.
- Start with a small order. With new buyers, ask for payment in advance or a deposit. Once the relationship is stable, consider allowing payment after delivery.
- Write a clear contract or order confirmation. Include the product, quantity, price, currency, delivery terms (Incoterms), payment deadline, minimum shelf life on arrival and how complaints are handled.
- Prepare complete, consistent documents. The invoice, packing list, bill of lading and certificates must match. Even small differences can cause delays at customs or give a buyer an excuse to pay late.
- Keep communication in writing. An email confirming price and terms helps a great deal if a disagreement comes up later.
- Ask about export credit insurance if you plan to sell on credit in large amounts. Discuss this with your bank or an insurer.
For the rules on commercial payments and customs in the EU, confirm the details for your product with the competent authority or an adviser. This article gives only the general picture and is not legal advice.
Selling through a platform: you do not chase payments yourself
Many owners of small businesses find it hard to look for customers and also collect money from many buyers in many countries. That is one reason to consider selling through the Miss Linh B2B platform.
Miss Linh (Vietnam Food Europe B.V., Oegstgeest, the Netherlands) is a B2B platform and service provider. Vietnamese producers sell their products in their own name to European businesses: restaurants, caterers, shops, supermarkets and wholesalers. This differs from sending goods to each customer yourself:
- You remain the owner of your products until they are sold.
- The products are stored in a warehouse in the Netherlands, and Miss Linh delivers them to buyers from there.
- Miss Linh handles orders, collects payment from buyers, delivers, and deals with complaints and returns.
- There are no middlemen taking margins. Miss Linh earns a commission on the products that are actually sold.
This means you do not have to assess every European customer or chase every invoice. For exactly how and when you receive your money, talk to the team through the contact page before you decide. The team speaks Vietnamese, Dutch and English.
What you still need to prepare yourself
Selling through a platform does not mean you have nothing to do. The producer needs:
- The required food-safety certificates, for example HACCP or ISO.
- EU-compliant labelling and packaging.
- An EORI number and a Dutch VAT number.
- Products with enough shelf life for European buyers to resell or use them.
Miss Linh helps with these steps, including advice on whether your product can be sold in the EU, pricing advice, setting up VAT and customs, and transport and customs clearance to the warehouse. You can look at the producers already on Miss Linh to see how they present their products.
Frequently asked questions
Should I ask for payment in advance or let the buyer pay later?
With new buyers, payment in advance or a deposit is the safer choice. European buyers are used to paying after delivery, so once the relationship is stable you can consider it, but check the buyer and think about credit insurance first.
Is a letter of credit (L/C) always the safest option?
An L/C has a bank in the middle, so it is safer in terms of payment, but the procedure is complex and the documents must match exactly. For small orders, many companies find an L/C impractical. Ask your bank for the specific conditions.
What if the buyer complains about quality or shelf life?
This should be set out in the contract: minimum shelf life, how the goods are inspected and how complaints are handled. When you sell through Miss Linh, handling complaints and returns is part of the platform’s service.
What do I pay to sell through Miss Linh?
Miss Linh earns a commission on the products that are actually sold. For the specific terms, talk directly to the team through the contact page.