Here's the thing. I am still at the planning phase of starting my export trading company, but I have less than USD 1,000 for start-up cost. So...

If I find a buyer for my client's product, can I ask my client to pay for the freight forwarder, insurance, and other costs in advance? Once I fulfill terms of the L/C, I would transfer all the money (price, freight forwarder fee, insurance fee, custom, etc.) minus my commission.

Thanks in advance.

Quoting from [Rookie]:


Here's the thing. I am still at the planning phase of starting my export trading company, but I have less than USD 1,000 for start-up cost. So...


If I find a buyer for my client's product, can I ask my client to pay for the freight forwarder, insurance, and other costs in advance? Once I fulfill terms of the L/C, I would transfer all the money (price, freight forwarder fee, insurance fee, custom, etc.) minus my commission.


Thanks in advance.

Do you have a contract with your client?  If you do, those things should be included in the contract.  Since your new to this do you know about SED documents or the AES?  What is your reason for wanting to offer CIF over CFR or FOB?    

With your lack of seed money I would suggest you start up as a selling agent and get some trade seals under your belt as well as building a reputation first.  There are not many companies if any that will open an L/C to an individual.  I would also have to ask if you have incorporated or are even liscenced to do business in your state of operation.  You also say you want to accept L/C what is your experience with the types of and the terms of L/C?  I hope  you reach your dream but make sure that you are aware of all it entails.

regards,

Ranger

Replying to [Ranger]:

In one word, clients will pay the cost of products, the freight fee and your service. Otherwise, you can not get any.

Quoting from [Peter Chan]:


Replying to [Ranger]:


In one word, clients will pay the cost of products, the freight fee and your service. Otherwise, you can not get any.

      Peter, what are you trying to say?????  Look at his experience.  What client ie. (seller) is going to allow an unkown agent to accept their money for goods, insurance, and freight without a contract and without that agent being insured for the entire amount of the deal.   Its ludicrous to think that the seller will do this as there would be no guarantee they would see their money. 

     There are selling agents out there but more often than not they are manufacturer reps who have contracts for comission sales.  Furthermore most Mfg Reps are represenatives of more than one comapny.   I make my living both as a buyers agent and a Mfg's Representitive. 

Maybe your looking at this in a different way as the client being the buyer, but I do not believe that is what he meant.

Please expand your answer.

Best regards,

Ranger

Replying to [Ranger]:
Ranger,i agree with you cos as i understand,no client will put money in somebody else's pocket,give him to play and without being assured that the situation will be under control.
But what makes me don't understand is that,i work for one small European country,most of the clients from that country never disagree T/T 100% in advance raised by Chinese Supplier.No matter i'm in China,I still feel unsafe under these transaction.Sometimes,this payment put me in very negative position and i'm very weak to control the qualily and delivery time for my clients.I want to know what causes buyers to agree this fully in advance payment.Chinses goods are really so much hot in world?

Quoting from [carolsemir]:


Replying to [Ranger]:

Ranger,i agree with you cos as i understand,no client will put money in somebody else's pocket,give him to play and without being assured that the situation will be under control.

But what makes me don't understand is that,i work for one small European country,most of the clients from that country never disagree T/T 100% in advance raised by Chinese Supplier.No matter i'm in China,I still feel unsafe under these transaction.Sometimes,this payment put me in very negative position and i'm very weak to control the qualily and delivery time for my clients.I want to know what causes buyers to agree this fully in advance payment.Chinses goods are really so much hot in world?

Carol, until I'am 100% sure of a supplier we never do T/T100% in advance.  we only do T/T CAD with inspection.  Once we have a working relationship with a supplier we may do 30% CIA 70% TT CAD.  With large orders over 100K it is always via L/C.  I understand your concern.  I can't stress it enough for a first time buyer that you need to have everything covered and be absolutely sure before you do TT100% in advance.

Best regards,

Ranger

Replying to [Ranger]:
Hi Ranger, many buyers here like to do T/T 100% after seeing B/L copy.From my point of view,it is a safe way for both sides:suppliers and buyers.But suppliers takes some bit more risk and they have to pay for the all product cost at first.

We are a freight forwarding company and we deal with many chinese suppliers and overseas buyers.Most of them are honest and long term cooperation and hence payment means is not a issue.But for larger orders or first deals they have to take securer ways to ensure both safty.

Replying to [Rookie]:I was a sales agent in Taiwan for Domtar Gypsum and for Georgia Pacific Chemical Division. I had a Sales and Commission Agreement with both companies. I would find buyers, the buyers would pay directly to Domtar or the GP. Once a month, I would send an invoice to Domtar and GP for commissions owed on each shipment. It workded out fine.

As a side note, Domtar later sold their Gypsum division to Georgia Pacific Building Materials Division. My Sales and Commission Agreement was transferred over to GP for a period of one year. GP eventually closed their export division of gypsum products and that business ended for my company.

So, tie up your supplier with a contract that, hopefully, gives you exclusive sales representation in certain markets and/or protects you againts circumvention on any customers that you introduce to your supplier.

Good luck. If you play your cards right and work hard, you can make a lot of money.

Replying to [Julia450000]:Julia.... are you drunk?