During sanctions, international business with Iran has slumped, but not stopped completely. Iranians have been inventive to be able to fulfill their payment obligations towards their foreign suppliers. However it comes at additional costs (agents, money changers, off-shore companies,…) and extra pressure on their cash-flow (pre-payment, financing trade with long-term loans, …).
For the time being, the mainstream banks are still too afraid of potential US sanctions to move. However, smaller banks with less exposure to the US in France, Belgium, Italy, Germany, … have restarted to process transactions with Iranian entities. And some of them, like KBC in Belgium, have restarted, under very strict criteria, to process and guarantee letters of credit for their trade finance customers.
So the situation is slowly normalising, decreasing the cost of doing business with Iran for the benefit of all parties. And if your banking partners have not yet re-entered into relationship with their Iranian counterparts, the existing circuits are still in place. If your potential partner is already dealing with foreign suppliers, they are used to payment in advance and they know how to send you money.
Let’s end up with a small tip: Unless your bank process transactions with Iran, you will be paid from another country. Ask your customer to never mention anything about Iran in the payment communication. It would trigger high scrutiny from your bank that may result in the delay or even the cancellation of the transaction.