Payment dispute with overseas client

An American client has a 40HQ Matson shipment for door delivery today. We’ve already agreed on the price and service terms, but we hit a disagreement on payment terms.

Since it’s our first cooperation, we require full payment before delivery, which is standard practice in most cases.

However, the client insists on paying 50% upfront and the remaining 50% after delivery, as he’s worried about being scammed. I’ve sent him many positive reviews from our long-term customers, as well as our company’s background—we’re ranked among the top 40 global freight forwarders for both air and ocean shipping. Still, he stands by his own payment terms.

My colleagues have been burned before: some clients refused to pay after receiving the goods, making up all kinds of excuses. That’s why I insist on full payment before delivery.

I also offered an alternative: if he places a second order with us, we can arrange payment after delivery for this first shipment. But he didn’t accept that either.

How do you handle situations like this? I want to protect our company while easing the client’s concerns.

First cooperation is always the hardest.