Replying to [Ranger]:A method is safe or not. It depends on for whom, the buyer or the supplier. No doubt, T/T is safer for supplier. And L/C is safer for the buyer.
And I have to say T/T is not the safest one for supplier.
I recently got an order. The order is small. And the buyer is first get in touch with me. He choose to pay by T/T. The total amount is 820 USD.
But our bank accounting just received 800 USD. I find out the reason later. Our buyer really sent 820 USD to our bank accounting. But he didn’t pay the post cost of sending money. Every businessman knows that money from a bank to another bank, it takes to pay. So the bank cut 20 USD from the 820 goods payment.
I have to say, the T/T payment this time is not safe.

Jason

Replying to [john junior]:In fact, you know how to do: to investigate the supplier. But you still wish the supplier is not a fraud. Otherwise you have no chance to earn money from this business. But be calm dowm. Before the ambassy gives your the answer, don't send money.
Good luck!

Jason

Replying to [Ranger]:
In July of year 2007 we have paid an order to Mr. Richard Ma, and have been swindled, promised to send the order and it never sent it, we we have all the documents that the payment of the pro forma verifies, our agent in China will try a demand against this company that it defrauded to our company.

We have all the conversations of MSN recorded with Mr. Richard Ma. our agent shipper in China communicated with and selaló that would send the order, but that is a lie, it does not respond ours emails and it eliminated our cueta of MSN of its list.

We will inform to Alibaba and the department of commerce in China that we have been swindled by ZHEJIANG GRAND IMP. & EXP. CO., LTD.

Best Regards



Daniel Abarzúa Bravo

www.proyectservice.cl

Replying to [jasonwz]:

Did you expect the sender's bank and your bank to provide free service?

Replying to [Catalyst]:
There are lot of website providing useful information on "how to" in the arena of international trade. Your local chamber of commerce and bank can be a good start to get to know what is accepted with regards to means of payment.

I have noticed that people are beating the bush around about payment.

There is a confusion between :

- Price agreed upon by supplyer and buyer;
- Mean of payment

First step is to AGREE on price and that is not small task because you have to take into consideration :
- Shipping terms,
- Quality and value of merchandise
- Risk associated with international transport (damages in transit),
- Custom excise, Indirect taxation VAT
- Insurance
- Payment terms and fees.

AL OF THE ABOVE SHALL BE CONSIGNED INTO A CONTRACT!!!

Once this is done, bot parties should feel secure...although there is till some risk of dispute.
Stick nevertheless to the mean of payment that is the most secure for both of you... I will not discute the usefulness of W.U/TT for family payment but will debate against vigorously for international trade.

Replying to [Ranger]: It depends on the transaction. If we are buying a spot purchase we require :

RWA
POP
TT Wire within 24 hours

If it is a long term contract then the utilization of financial instruments make more sense.
We would never approve a MT103, or MT 799 upfront to receive pop. When you are purchasing product over 1B, the instruments are expensive, and should not be utilized unless you have pop. You can spend over 300k for just utilizing a MT 799 for a supplier that just wants to shop with your money.

Replying to [Ranger]:
L/C AT SIGHT IS SAFE WAY

1. Quoting from [ModernClassicJasonLee]:
   
   
   Replying to [Ranger]: for the first time of business, I believe L/C is good choice.

Hi,

 

First of all, what is LC? And who(organisation in China) can I contact to verify if the company is real? at least the address is the address of that company......etc

 

Thanks

Joseph

Quoting from [Ranger]:

Typically, all payment methods are safe.  But only the buyer can define what is safe for their transaction and what assurances they require for their investment.  aspects of the L/C. So when, individuals ask what is safe no one can really reply as they have no insight into anyone elses business nor their requirements for trust and security of funds.

      Ranger,  as you said that you are in "SME" environ.  and from only a few  reply  of eastern, your SAFE PAYMENT  statement  are arguing with a nature and real time ..        your word of SAFE  is = ?, obviously not only mean PAY ?, I assume that they do not attempt to polarize the focus ?  or you do ? It is a time that " Culture & Condition" in every  country  are important  to know upon "any generalize statement? is it ranger?  to many  vary  of  things  to be generalized  e.g.: subject, object, condition and system !! a lot of  'approaching" and  a 'random-sampling' need to' statistic' and 'Matrix'.

     Catalyst,  I know that you are  consistent about L/C payment.  it is also to understand  that  the L/C it self as payment tool  is OK  but SAFE  is too wide and heavy one to bear?  you know it  that w/o understanding the clauses & terms,  many of  SME  got problem, costly, expired,  etc  and  get  looses. Also to ' ! ' " do not tell me that L/C also can not be used  as a tool by  "Scamer/Fraud" too. ? simply  'Irrevocable'  mean can not be canceled but it can be 'Expired'  or 'Refusal to pay because Discrepancy".  This is a joke or 'High tricky diplomacy' to do a scam ? most of SME  got headache with this !

So,  What ever payment method is ? important  to know is  to learn Basic, Safe Trade, and Due Diligence !!  before saying it is safe or not safe.  

 All  the best  ...to You !  Keep  ...the forum  Live   

Quoting from [salman861]:


hi everyone can you plz give me a advise " a customer give me a order and told me that i will pay cash against document method .it is the 1st order of my business life.it is a trial order and he also want that use my brand name on product."

can you peoples tell me what should i do ?

Your first order itself is a trial one.  He wants the brand name, for what?

Life gives you the exam and the lessons to study.  BE CAREFUL.