Discusses the most common methods of payment, such as open account, letter of credit, cash in advance, documentary collections, factoring, etc. Includes credit-rating and collection agencies in this country. Includes primary credit or charge cards used in this country.
Last Published: 5/31/2019

Croatian importers utilize most of the standard payment methods available in international trade.  American exporters should offer quotations based on the FOB (Free on Board) value at the port of export.  As a general rule, such quotations should also include a statement of the actual charges for freight and insurance plus any additional charges to the port of delivery. Quotations are usually in terms of the currency of the country of origin.  The terms of payment for imported goods vary according to the type of buyer and the buyer's access to capital.  Large organizations such as the government or energy companies tend to transact business on a sight-draft basis, while small companies tend to operate on documents against acceptable terms.  Payment between 80 and 120 days after acceptance is most common, but terms may vary between 30 and 180 days.  For larger orders of capital equipment, longer terms are often required.  It is advisable to ship on a letter of credit, sight letter of credit, or 30-day letter of credit basis that the importer can use as a negotiating instrument to expedite the payment transfer.  The payment transfer can be affected within 24 to 48 hours after the importer presents a valid import permit and proper documents to his or her bank. Collection agencies are often used by banks, telecoms, and other large companies to collect outstanding debts. The number of collection agencies has grown significantly in the past four years, and the Croatian Association of Collection Agencies includes some of the largest agencies in Croatia.
 

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.