Payment Filtering

Payment Filtering is an operation in foreign trade risk management, referring to the seller's process of screening orders after receiving them from buyers, based on preset payment conditions (such as payment methods, credit terms, credit limits, historical payment records, etc.), to decide whether to accept the order or request adjustments to payment terms. Use cases include: new customers placing first orders, sudden increases in order amounts from existing customers, rising political and economic risks in the buyer's country, etc. Precautions: It should be combined with the company's credit policy to avoid losing high-quality customers due to excessive screening; screening criteria should be dynamically updated, referencing buyer payment performance and external credit reports. The difference from 'credit assessment' is that payment filtering focuses more on immediate decision-making at the order level, rather than long-term evaluation of the customer's overall credit; unlike 'payment guarantee', filtering is ex-ante prevention, while guarantee is ex-post protection. Proper application can reduce bad debt risk and optimize cash flow.