Payment Risk Checklist

Importers, exporters, traders, finance teams, and sourcing teams · Before agreeing payment terms with a counterparty.

What this checks: Credit terms, advance-payment exposure, payment controls, and country/currency risk.
When to use: Before agreeing payment terms with a counterparty.
Decision it protects: Accepting a payment structure before identity, method, release triggers, document control, cash exposure, and dispute path are written down.

Red flags

Do not accept payment terms until identity, bank details, screening, release triggers, document control, cash exposure, and dispute path are written down.

Minimum conditions before this step should move forward.

Counterparty legal entity, beneficiary, and payment authority are verified.
Sanctions and country-risk screening is complete.
Payment method matches leverage and trust level, not just supplier preference.
Risk split for prepayment, production, shipment, document, and credit risk is explicit.
Release triggers and callback verification are set before PO approval.
Cash exposure, working capital, and FX impact are modelled.
Dispute path and escalation owner exist before money moves.