Specific Forms of Payment as a Factor in the Pricing Policy of Polish Companies in Foreign Markets
Purpose: The purpose of this article is to point out the role of forms of payment in the pricing policy of a company that enters international markets through exports. It focuses on specific forms of payment in export-import transactions that significantly reduce the risk of the exporter not receiving payment. Design/Methodology/Approach: This article is the initial part of research within a project on the expansion strategy of Polish companies on foreign markets. In order to achieve the objective, a method of critical analysis of domestic and foreign literature (descriptive and statistical) relating to these issues was used. Findings: The article presents the forms of payment used in exports, which should secure payment for exported products. This is of vital importance, as sales proceeds condition the implementation of the marketing strategy and the maintenance on foreign markets. Based on the results of the study, conclusions are drawn regarding the companies' choice of payment form in export transactions. Practical implications: In addition to letters of credit and collection, factoring and forfaiting are particularly convenient for an exporting company. Both of these forms of payment are primarily offered by banks and are used by Polish companies. However, the scale of their use is not yet large. Factoring is used much more frequently and its turnover is growing steadily. Forfaiting, on the other hand, is used infrequently. Increasing the use of these forms of payment requires a company to have more experience in operating on foreign markets and to have highly qualified personnel. Originality/value: The article presented here is an attempt to show the relationship between an exporter's marketing strategy and pricing policy and ways of securing payment and reducing commercial risk.