Payment Index

The Payment Index is a metric used in foreign trade to quantitatively assess a buyer's payment behavior and credit risk. It is typically calculated by credit insurance agencies, banks, or third-party data platforms based on historical transaction records (such as whether payments were made on time, days overdue, number of refusals to pay, etc.). It is commonly used by exporters to evaluate customer credit before accepting orders, set credit limits and payment terms (such as T/T, D/P, O/A), and decide whether to insure export credit. Use cases include new customer onboarding, credit limit adjustments for existing customers, and collection strategy formulation. Notes: Different institutions may have different scoring standards and thresholds for the index, so it must be interpreted in conjunction with specific reports; the index only reflects historical performance and cannot fully predict future risks; it should be distinguished from 'Payment Terms' and 'Credit Rating'—payment terms refer to specific settlement methods, credit rating is a comprehensive evaluation of debt-paying ability, while the payment index focuses more on historical payment behavior.