Building suppliers request secure payments
Middle East suppliers have stressed the importance of secured payment methods when dealing with client requests for longer payback periods.
Middle East suppliers have stressed the importance of secured payment methods when dealing with client requests for longer payback periods.
“A few clients have asked for a longer credit time, and we have accommodated this, but always under secured payment instruments such as a letter of credit or bank guarantee,” said Arminox Gulf FZCo general manager Torben Krebs.
However, Mabani Steel president Muayyad Khudairi said the industry “Has survived the financial crisis when it comes to payment terms”, but the company is still careful to implement strict procedures.
“All export sales are paid through confirmed irrevocable letter of credits. Local sales are two thirds by letters of credit and one third by post-dated cheques. payments made by post-dated cheques are offered to select customers after a thorough credit check by us,” added Khudairi.
