Payment terms in Brazil
Discussion
Public or private sector?
Don't know about Brazil but such terms are found elsewhere.
Worth dropping a line to this chap:
Marconi Ribeiro
Technology & Smart Cities
Department for International Trade
British Consulate General Recife
Av. Agamenon Magalhães, 4775 | CEP 50070-160 | Recife, PE | Brazil
Tel: +55 81 2127 0203
marcone.ribeiro@mobile.trade.gov.uk
Don't know about Brazil but such terms are found elsewhere.
Worth dropping a line to this chap:
Marconi Ribeiro
Technology & Smart Cities
Department for International Trade
British Consulate General Recife
Av. Agamenon Magalhães, 4775 | CEP 50070-160 | Recife, PE | Brazil
Tel: +55 81 2127 0203
marcone.ribeiro@mobile.trade.gov.uk
In that case, worth checking out UK Export Finance - they have some tools and services that may help you if the credit terms are indeed 75 days.
Also, you should be paid in USD - that being the case, worth opening a Dollar bank account with your UK bank and having the money paid in there. You can then transfer to your normal £ account as and when the exchange rate is more favourable - although does keep cash out of your cashflow.
Also, you should be paid in USD - that being the case, worth opening a Dollar bank account with your UK bank and having the money paid in there. You can then transfer to your normal £ account as and when the exchange rate is more favourable - although does keep cash out of your cashflow.
We have a US company, they want to pay in local currency to our EU entity though. Basically they have us by the wotsits if we want their business. As it's software usage there's no outlay on our part so the credit guarantee won't apply - thanks for the pointers though, may come in handy for other work
mr_spock said:
We have a US company, they want to pay in local currency to our EU entity though. Basically they have us by the wotsits if we want their business. As it's software usage there's no outlay on our part so the credit guarantee won't apply - thanks for the pointers though, may come in handy for other work
Whose local currency ?Local to the EU ie Euros or local to Brazil ie Real.
Interesting you say 75 days would be tough to take, but then you say there is no outlay on your part.
To me that indicates that even if you have to wait 75days, you're still getting cash which you would not have had without the contract with little or no cost on your behalf.
Well I was trying to be a little non-specific 
It would be in the operating company's local currency, the Real in this case. The price is set in EUR and converted to local currency at the time of invoice. We were trying to agree on 30 days to reduce the risk of currency fluctuations, but agreed on 60 days with the parent co. Local Brazil co wants 75.
There is some outlay but it's a global software solution, so it's not directly associated with the local business. Think of it as SAAS but it's not really. Our costs are mostly staff costs, so time to pay is all about cash flow. We run pretty tight, this contract could make a huge difference to us but the delay exposes us to currency risk and we still have to pay salaries.
No, we can't put the price up. I wish.
It would be in the operating company's local currency, the Real in this case. The price is set in EUR and converted to local currency at the time of invoice. We were trying to agree on 30 days to reduce the risk of currency fluctuations, but agreed on 60 days with the parent co. Local Brazil co wants 75.
There is some outlay but it's a global software solution, so it's not directly associated with the local business. Think of it as SAAS but it's not really. Our costs are mostly staff costs, so time to pay is all about cash flow. We run pretty tight, this contract could make a huge difference to us but the delay exposes us to currency risk and we still have to pay salaries.
No, we can't put the price up. I wish.
mr_spock said:
Well I was trying to be a little non-specific
It would be in the operating company's local currency, the Real in this case. The price is set in EUR and converted to local currency at the time of invoice. We were trying to agree on 30 days to reduce the risk of currency fluctuations, but agreed on 60 days with the parent co. Local Brazil co wants 75.
There is some outlay but it's a global software solution, so it's not directly associated with the local business. Think of it as SAAS but it's not really. Our costs are mostly staff costs, so time to pay is all about cash flow. We run pretty tight, this contract could make a huge difference to us but the delay exposes us to currency risk and we still have to pay salaries.
No, we can't put the price up. I wish.
You really should have looked at a forward contract to eliminate the currency risk - you may still be able to do that now, depending on the circumstances. Have a chat with your bank and see what they can do - there are plenty of other places you can go though. It would be in the operating company's local currency, the Real in this case. The price is set in EUR and converted to local currency at the time of invoice. We were trying to agree on 30 days to reduce the risk of currency fluctuations, but agreed on 60 days with the parent co. Local Brazil co wants 75.
There is some outlay but it's a global software solution, so it's not directly associated with the local business. Think of it as SAAS but it's not really. Our costs are mostly staff costs, so time to pay is all about cash flow. We run pretty tight, this contract could make a huge difference to us but the delay exposes us to currency risk and we still have to pay salaries.
No, we can't put the price up. I wish.
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