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: 11/19/2019

Depending on the size of the order and payment history of the buyer, the terms of the sale will vary. For larger transactions or where the seller is less comfortable with the credit worthiness of the buyer, foreign products are often imported using irrevocable letters of credit against documents, particularly during the first year of business. Opening irrevocable letters of credit is a straightforward process in Portugal through which importers can insure against exchange risk with their banks. When a long-term relationship has been established between a supplier and a customer, more favorable credit terms may be negotiated.
Payment terms are frequently 30, 60 and 90 days. Large corporations, including large retailers, negotiate or impose longer payment terms that can last up to six months. The government defers all payments.  Depending on the department, payments can be deferred up to one year. Product pricing must also include the necessary financial charges.
 Aside from letters of credit, methods of payment most commonly used in Portugal for international trade are:
 Checks (Cheques): While bank checks offer security in transactions, (since the bank issuing the check needs the guarantee of the transfer to issue it), personal checks do not provide adequate guarantees against commercial risk, as the bank does not guarantee the funds in the account of the person issuing the check.
Payment Order (Letras): In this case, the importer gives an order to the bank and, by using a correspondent bank in the same country, pays the exporter’s bank the amount due. The initiative for payment in this case is the importer’s responsibility. These transfers, via SWIFT, are a common practice in the Portuguese banking system.
Documents against payment (Cartas de Crédito): Exporters use this instrument to ensure the possession of the merchandise until the collection of funds, or at least until the importer accepts a bill of exchange.
Documentary Credit (Credito Documentário): This method of payment offers safer conditions in the transaction, due to the involvement of banks in both countries. In this case, the importer’s bank ensures against the entrance of a third party (an exporter, the bank or a correspondent bank).
Credit Card (Cartão de Crédito) for Small Online Purchases: Even though credit card purchases over the Internet are still not widespread in Portugal, this option should not be excluded. 
 A U.S. exporter looking to recover debts should contact the Portuguese Credit and Collection Management Association (APERC) for information on and contact with debt collecting agencies. The Association can be reached at: http://www.aperc.pt
Credit reports on Portuguese companies can be obtained by contacting any of the sources below:
Dun & Bradstreet Portugal
R Barata Salgueiro 28,3º
1250-044 Lisboa, Portugal
Tel.: +351 213 500 300 Fax: +351 213 578 939
 Igerinform - Relatórios de Crédito
Avenida Columbano B Pinheiro 75,7º
1070-061 Lisboa, Portugal
Tel.: +351 213 588 800 Fax: +351 213 588 801
You may also take advantage of customized credit report provided by the U.S. Commercial Service at the U.S. Embassy in Lisbon.  Our reports will help you assess the risk, reliability and capability of the Portuguese company. This service is called the International Company Profile (ICP).
 

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.