Do you think USD 10,000 is too small for opening a L/C?
Post 1 of 12
I have get a few pricing for Chinese supplier recently majority of them do not accept L/C even the first order exceeded a little over USD10,000 what they want is we send T/T. Are L/C really that difficult to handle in China?
Actually what is the complication that Chinese suppliers have when the deal is FOB nearest port in China by loose cargo LCL and the payment is 100% irrevocable L/C at sight ?
Mold price is another issue, normally they want this to be paid in advance, what happen if we pay them and they can't meet the quality and spec, I don't see they will refund if this were to happen.
If they are confident in meeting the spec why they dare not to accept L/C?
Is there any hidden agenda? Like in actual requirement can't be met and the seller still want the sales and so they tell the buyer that they payment must be in advance before production. Upon not meeting the requirement the seller still get the money and there is no chance for the buyer to reject the goods. This is only my opinion what is yours?
Actually what is the complication that Chinese suppliers have when the deal is FOB nearest port in China by loose cargo LCL and the payment is 100% irrevocable L/C at sight ?
Mold price is another issue, normally they want this to be paid in advance, what happen if we pay them and they can't meet the quality and spec, I don't see they will refund if this were to happen.
If they are confident in meeting the spec why they dare not to accept L/C?
Is there any hidden agenda? Like in actual requirement can't be met and the seller still want the sales and so they tell the buyer that they payment must be in advance before production. Upon not meeting the requirement the seller still get the money and there is no chance for the buyer to reject the goods. This is only my opinion what is yours?
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23 Oct 2007 17:13
Post 2 of 12
Replying To [David Frencken]:LCs are NOT difficult to handle in China, as long as theya re issued from a reputable bank.
They are very common indeed.
We handle LCs all the time, both buying and selling. I cannot see what the problem would be.
I would be very cautious indeed with anyone who insists on TT up front.
Mould Fees are a different story. I DO understand, AND agree that Moulds need to be paid up front, as many Chinese manufacturers have been caught in the past, by paying for the moulds themselves and then not receiving an order. I have had several moulds made in the past, and have always paid up front for them.
If I were you, I would look for a manufacturer who is prepared to accept irrevocable LCs at sight.
![[em3]](http://img.alibaba.com/images/eng/style/icon/emoticons_grin.gif){kind=icon}
23 Oct 2007 21:27
Post 3 of 12
Replying to [David Frencken]:
I don't agree with you totally. Even you do business with Chinese on T/T term basis, you can inspect your merchandise before shipment,isn't is ?
I don't agree with you totally. Even you do business with Chinese on T/T term basis, you can inspect your merchandise before shipment,isn't is ?
24 Oct 2007 20:39
Post 4 of 12
Replying to [David Frencken]:
I'm not from China but from Nepal. Here most banks, including mine, will agree to LC payment only for a minimum of USD50,000. Smaller and mainly newly established banks may agree to LC payment even below US$50,000.
macs2005
I'm not from China but from Nepal. Here most banks, including mine, will agree to LC payment only for a minimum of USD50,000. Smaller and mainly newly established banks may agree to LC payment even below US$50,000.
macs2005
24 Oct 2007 22:11
Post 5 of 12
Replying to [David Frencken]:
If we turn around the situation, now supplier asked for payment in advance how about we ask supplier to deliver first? Would they agree? L/C is a compromise at the middle. If your quality is good why need inspection first before shipment. If you are asking us to do an inspection first it means that you are telling me that you do not have confidence in your quality. Do you think this statement is correct?
Now you ask someone who don't even know you to send you money first. Do you dare to send some one you dont know the goods first?
You may say that your company is reputable one. We also can say our company is a multi billion dollar company.
So where is the end? You don't want to take risk and you ask the buyer to take all the risk, is this fair? I think this is call selfish, do you agree.
If we turn around the situation, now supplier asked for payment in advance how about we ask supplier to deliver first? Would they agree? L/C is a compromise at the middle. If your quality is good why need inspection first before shipment. If you are asking us to do an inspection first it means that you are telling me that you do not have confidence in your quality. Do you think this statement is correct?
Now you ask someone who don't even know you to send you money first. Do you dare to send some one you dont know the goods first?
You may say that your company is reputable one. We also can say our company is a multi billion dollar company.
So where is the end? You don't want to take risk and you ask the buyer to take all the risk, is this fair? I think this is call selfish, do you agree.
25 Oct 2007 02:25
Post 6 of 12
Replying to [David Frencken]:
10000usd is not big money to l/c.As you know,the fee of l/c is very high.
10000usd is not big money to l/c.As you know,the fee of l/c is very high.
25 Oct 2007 02:26
Post 7 of 12
Replying to Archersun,
The average income per capita or average income per person per year in China for year 2005 is USD 5,600 I do not know what it is now
http://www.demographia.com/db-chinacity$.htm
So your are saying it is a small money, that is 2 years of salary of an average person in China. Do you dare to send your 2 years salary to someone you don't even know or only deal on the phone and email?
The average income per capita or average income per person per year in China for year 2005 is USD 5,600 I do not know what it is now
http://www.demographia.com/db-chinacity$.htm
So your are saying it is a small money, that is 2 years of salary of an average person in China. Do you dare to send your 2 years salary to someone you don't even know or only deal on the phone and email?
25 Oct 2007 17:24
Post 8 of 12
Replying to [David Frencken]:
Hi, David,
I think open an L/C or not this is not a question, it also has nothing to do with the amount. If you think it worth, you request an L/C; If you trust your Chinese suppier, it's better to accept T/T payment, it saves money and time for the both sides.
For the first time, it will be better to open an L/C, no matter where the suppliers come from.
This is what I think, hope it will help.
Maurice
Hi, David,
I think open an L/C or not this is not a question, it also has nothing to do with the amount. If you think it worth, you request an L/C; If you trust your Chinese suppier, it's better to accept T/T payment, it saves money and time for the both sides.
For the first time, it will be better to open an L/C, no matter where the suppliers come from.
This is what I think, hope it will help.
Maurice
25 Oct 2007 18:55
Post 9 of 12
Replying to [David Frencken]:
In my opinion, Maurice's closing remarks, and David's opinion given earlier, taken together, should put an end to all arguments on the most preferred mode of payment. Issues of trust, size of LC/economy etc. do not enter the picture. Safeguarding mutual interests do.
In my opinion, Maurice's closing remarks, and David's opinion given earlier, taken together, should put an end to all arguments on the most preferred mode of payment. Issues of trust, size of LC/economy etc. do not enter the picture. Safeguarding mutual interests do.
25 Oct 2007 22:22
Post 10 of 12
Replying to [David Frencken]:
I think you need a third party to help you to check the quality of your product before shipment.this is a better way to accept T//T without any risk and it will save more time and money for both of your supplier and yourself.
the more details you may find in our website www.audin.com.hk.any question pls drop your message to me,I will try my best to help
I think you need a third party to help you to check the quality of your product before shipment.this is a better way to accept T//T without any risk and it will save more time and money for both of your supplier and yourself.
the more details you may find in our website www.audin.com.hk.any question pls drop your message to me,I will try my best to help
26 Oct 2007 02:53
Post 11 of 12
Replying to [David Frencken]:Dear friend :
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Thanks for taking a few minutes to read our message.
Our company is a largescale wholeseller which selling all kinds of electronic products.such as TVsets Laptops cameras mobile phones GPS Systems Mp3 Mp4 Motocycles PS3 and so on.Offering good price and good quality commodities to customers are our business purpose.our payment is paypal. moneybookers......If you need any electronic goods,we would like to give service to you!Don't forget to contact us.
Website: www.gbpebay.com
MSN : gbpebay@gmail.com
E-mail : gbpebay@gmail.com
Tel: 008610-86636607/08/09
Fax : 008610-81853832
26 Oct 2007 07:07