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: 2/16/2019
Most Tajik firms use prepayment with balance due upon delivery.  Payments in cash continue to dominate sales within Tajikistan.  Limited number of post-terminals and ATM machines installed in the country. Limited number of large-scale Tajik firms are familiar with letters of credit, documentary collections, wire transfers, and cash in advance.  Most companies prefer not to use letters of credit due to the high cost and exposure to tax authorities.  Borrowing from personal contacts and informal channels of financing are still prevalent.   Average sales in Tajikistan are low by western standards, and Tajik companies often have problems finding short-term financing.  A U.S. firm’s ability to provide or arrange financing is important to building significant market share.  Offering sales of goods on consignment, at least for initial sales, will enable a U.S. company’s distributor to generate more funds for subsequent purchases.  Leasing is undeveloped in Tajikistan, and banks are only beginning to explore this method of financing through leasing of vehicles, agricultural equipment and construction equipment.  While Tajikistan enacted its Law on Leasing in 2003 and made recent amendments in 2016 and 2017, the majority of Tajik businesses have little knowledge about leasing as a financing tool. 
 

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