Austria - Methods of PaymentAustria - Methods of Payment
It is common practice in Austria to require either payment in advance (at least partial), or certified and irrevocable letters of credit for initial transactions. Due diligence information is readily available for most companies, greatly reducing the risk of non-payment. Once the relationship with a customer is established, open account and extended terms will be expected. As Austria is an advanced industrialized nation, programs offered by the U.S. government and multinational institutions designed to reduce the risk of trading with developing countries do not apply here. A bilateral arbitration agreement exists and can be included in contracts. In Austria, the common business practice is to allow 30 to 60 days for payment. Early payments (within 14 days) are usually credited with a discount of 3 to 6%, depending on the industry. Supplier credits are common.