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: 8/16/2019

The most common methods of payment for trade and project financing are:

  • Open Account:  The exporter sends an invoice to the importer and trusts them to pay as instructed.  This is the most common method of payment in the Netherlands.
  • Payment on Delivery:  This method is also quite common where payment is made 30, 60, or 90 days from the date of the invoice.
  • Documentary Collections:  The exporter, upon shipment, presents the relevant documents to his or her bank.  This bank then sends the documents to the importer's bank, which contacts the importer.  In order to receive the documents representing the goods, the importer initiates payment.  Both parties are assured of the other's performance under satisfactory terms.
  • Letters of Credit:  The exporter is paid for the goods shipped or services rendered only upon presenting documents that have been pre-described in a Letter of Credit.  Upon issuing a Letter of Credit, the importer's bank acts as guarantor for payment.  Payment under a Letter of Credit depends on the documents presented at the bank and not on the quality of the goods delivered or the services rendered.
  • Bank Guarantees:  A bank guarantee (also known as a bond) obligates the bank to pay a sum of money if the applicant fails to fulfill his/her obligations.  The beneficiary may claim the guarantee by presenting copies of unpaid invoices and or other documents relating to the transaction.  There are many kinds of guarantees including advance payment guarantees, performance bonds, or maintenance bonds.
  • Credit Rating Agencies:  Dun & Bradstreet and Graydon have local offices in the Netherlands.
  • Credit Collecting Agencies:  There are numerous collection agencies in the Netherlands.  Please contact the Commercial Service for a list.
  • Primary Credit Cards Used:  Mastercard, VISA, American Express.

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.