Foreign trade rarely uses one settlement mode. Key accounts want OA, new markets want LC, middle ground is TT deposit plus balance. Sales switch modes to close deals; finance later finds exposure over limit. Risk isn’t one instrument—it’s failing to bind method, limit, and ship gate per customer.
Grades based only on revenue treat slow payers as premium. Payment method must enter the grade so shipment has a gate.
How Mixed Settlement Hides Exposure
LC watches documents, TT watches arrival, OA watches terms and insurance. Three logics on one order—everyone says “already safe.” Reality: production before deposit, OA balance uninsured. Claims reveal an A-grade customer.
Sales KPIs on shipment, not collection structure. Flexible customers get cleared; flexibility becomes habit and risk forms are annual paperwork.
Grades Must Carry Settlement Terms
- Primary settlement per customer fixed—changes through approval; deal-by-deal default forbidden.
- OA requires limit, terms, stop-ship on overdue; LC requires doc list and soft-clause checks.
- TT: no production without deposit; no B/L release with open balance—system blocks, not verbal.
- Quarterly regrade on collection timeliness and doc mismatch—auto-tighten ship on downgrade.
The XYN digital intelligence system chains customer grade, settlement, and shipment validation. Growth isn’t stacking receivables when collection risk sits in the grade.
