paymentI am building a new startup that will service businesses and corporations. For services we perform, I plan to quote and charge large sums greater than 20,000$.
How do companies pay large amounts, I mean what form of payment method do I employ?
For local payments, wire transfers or checks would work.
If you are planning to service customers outside of the US, you can accept telegraphic transfers.
Short answer: Usually electronic transfers (wire, TT…). Sometimes checks.
Don’t forget that you can use escrow services.
Speaking of the latter: in the event you’re moving goods internationally, a seller might request a cashier’s check or equivalent to protect themselves from risk of default by the buyer. (The nose dive in international commerce in 1930-1932 was exacerbated by bank checks no longer being perceived as safe.)
Lastly, note that the payment terms can vary drastically. When shipping goods, you might get paid on shipment, on border exit, on border entry, on receipt, up to 90 days later, and so forth. Or any combination of the latter. So be sure to specify your payment terms if physical goods are involved. (And frankly, even when not.)
Apart from wire-transfer & checks,
Wikipedia has an entry for “Methods of payment in International trade”
http://en.wikipedia.org/wiki/Methods_of_payment_in_International_trade
Where the methods that are mentioned
Theres also a more detailed outline on http://www.export.gov titled “Chapter 1: Methods of Payment in International Trade”
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