What is a realistic timeframe for the receipt of commission?
Post 1 of 24
Hi Newbie here
I'm an indirect Import Agent and in the process of signing 2 suppliers onto an agency agreement. I was wondering whether anyone could please help me out with a couple of questions:
In your opinon what is a realistic timeframe for the receipt of commission, once a sale has been completed? i.e. 7, 21 or 30 days.
Is it feasible to ask for commissions to be made as soon as a sale has completed or is this unreasonable?
Does anyone have a compensation & indemnity clause in their agreements (i.e. commecial agents regulations 1993)? How do they find this clause is received by potential suppliers?
I'm based in the UK and the suppliers are based in the US, should I insist commission is paid in Euros or US dollars - really basic question, I know but just need some clarification that I am on the right lines here.
Many thanks in advance.
DaTrade
I'm an indirect Import Agent and in the process of signing 2 suppliers onto an agency agreement. I was wondering whether anyone could please help me out with a couple of questions:
In your opinon what is a realistic timeframe for the receipt of commission, once a sale has been completed? i.e. 7, 21 or 30 days.
Is it feasible to ask for commissions to be made as soon as a sale has completed or is this unreasonable?
Does anyone have a compensation & indemnity clause in their agreements (i.e. commecial agents regulations 1993)? How do they find this clause is received by potential suppliers?
I'm based in the UK and the suppliers are based in the US, should I insist commission is paid in Euros or US dollars - really basic question, I know but just need some clarification that I am on the right lines here.
Many thanks in advance.
DaTrade
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12 Nov 2006 15:31
Post 2 of 24
Replying to [DaTrade]:
Hello,
I would like to express my views in this matter.
The general practice is to obtain a Fee Protection Agreement (FPA) guaranteed by Sellers Bank payable in US dollars or Euro, while the contract is in the signing process.
In this way, Agents commission is paid automatically by Sellers bank on receipt of payment from Buyers Bank.
The Agent has to provide his contacts plus his Bankers detail with swift code to the seller in order to obtain FPA.
Hope this helps.
Regds
Hello,
I would like to express my views in this matter.
The general practice is to obtain a Fee Protection Agreement (FPA) guaranteed by Sellers Bank payable in US dollars or Euro, while the contract is in the signing process.
In this way, Agents commission is paid automatically by Sellers bank on receipt of payment from Buyers Bank.
The Agent has to provide his contacts plus his Bankers detail with swift code to the seller in order to obtain FPA.
Hope this helps.
Regds
08 Dec 2006 06:05
Post 3 of 24
Replying to [DaTrade]:plz advice me ,i am a new broker ,who can i get my commission.,what is the procedures should i do to get the commission
with best regards
Samir Abd Elsamad
[Removed by Moderator. Please do not post email addresses on the forum, I have edited this post accordingly. Use TradeManager if you need to contact someone.]
with best regards
Samir Abd Elsamad
[Removed by Moderator. Please do not post email addresses on the forum, I have edited this post accordingly. Use TradeManager if you need to contact someone.]
12 Dec 2006 19:28
![[em2]](http://img.alibaba.com/images/eng/style/icon/emoticons_laugh.gif){kind=icon}
Post 5 of 24
Replying to [DaTrade]:I am a new broker that is interested.What do I need to do to obtain comission.
12 Dec 2006 20:59
Post 6 of 24
Replying to [DaTrade]:
AS far from my experience, and knowledge, the agent commission is payable to the agent only after successful execution of the order and ONLY after receipt of payment for the goods shipped....
because it is very immature to ask commission when the sale is just ordered, because anything will happen in the mean time, so it will be right to ask for commission once the sale is completely executed and after due receipt of proceeds realisation from the buyers.
that means both the buyer and shipper got their proceeds, ie. the buyer received the goods he ordered and the shipper received the payment for the goods he shipped, so both are now satisfied on each other, now the agent is safe by all means, he has the right by all means to ask for the commission due to him because both ways the sale is completed upto the satisfaction at both the ends.
![[em17]](http://img.alibaba.com/images/eng/style/icon/emoticons_shake_hands.gif)
AS far from my experience, and knowledge, the agent commission is payable to the agent only after successful execution of the order and ONLY after receipt of payment for the goods shipped....
because it is very immature to ask commission when the sale is just ordered, because anything will happen in the mean time, so it will be right to ask for commission once the sale is completely executed and after due receipt of proceeds realisation from the buyers.
that means both the buyer and shipper got their proceeds, ie. the buyer received the goods he ordered and the shipper received the payment for the goods he shipped, so both are now satisfied on each other, now the agent is safe by all means, he has the right by all means to ask for the commission due to him because both ways the sale is completed upto the satisfaction at both the ends.
14 Dec 2006 03:21
Post 7 of 24
Replying to [DaTrade]: Yes, this is a good answer. A commission should be paid after goods & payments are received. Signing a contract doesn't indicate that we can ask for a commission yet. We once experience a case. My buyer signed a 4x40' contract and the third party asked for a commission right away. Based on good will, we paid him. But, it turned out that the contract was later cancelled and we only delivered 2x40' containers.
15 Dec 2006 19:13
Post 8 of 24
Replying to [DaTrade]:Sorry I cannot answer Q but I am Interested in the answer.Great Question
16 Dec 2006 10:06
Post 9 of 24
Well when the FPA was created, the agent or broker should have stated how many day's after the end of the transaction you require your commission. Personally I think a time frame of 3 business day's is enough time for the supplier to get your commission over.
17 Dec 2006 10:09
Post 10 of 24
Thanks for all your contributions - I've got this one sorted now. All seems so complicated when you first start out, but it really isn't with great forums like this and a wonderful tool called the internet.
DaTrade
DaTrade
18 Dec 2006 01:15
Post 11 of 24
Replying to [DaTrade]: The commission to be received immediately after successful completion of order.
It is not at all unreasonable to ask for commission. It is your right.
It depends on your agreement clause.
You can demand the commission in your desired currency. Euro, USD, or GBP.
To avoid any ambiguity these points should be cleared in agreement itself.
It is not at all unreasonable to ask for commission. It is your right.
It depends on your agreement clause.
You can demand the commission in your desired currency. Euro, USD, or GBP.
To avoid any ambiguity these points should be cleared in agreement itself.
18 Dec 2006 23:19