Hello everyone,

Could anyone please let me know the security ( if there is any ) the buyer has if the supplier ask them to pay in full for the goods in advance and then receive all the shipment documents and certificates by courier or post - especialy first time transaction!?!?

(why do I think that I am asking a question for which I allready know the answer )

Replying to [pako]:
Ask your bank for a letter of credit, or just put this term into Google to get detailled information

Quoting from [pako]:


Hello everyone,


Could anyone please let me know the security ( if there is any ) the buyer has if the supplier ask them to pay in full for the goods in advance and then receive all the shipment documents and certificates by courier or post - especialy first time transaction!?!?


(why do I think that I am asking a question for which I allready know the answer )

There is no security in a T/T transfer and an L/C is nothing like a T/T

Replying to [Ranger]:
ditto what Ranger says.

TT means you send the money directly to the supplier bank account... If he ships you old newspapers you cannot ask your bank to bring the money back (which I have been asked) because the bank has NO authority to take money out of the other persons bank account.

and yeah and LC is the safest method, but it is expensive to set up (several hundered dollars worth)

Replying to [Foow]:
I do not agree that "Replying to [Ranger]:
ditto what Ranger says.TT means you send the money directly to the supplier bank account... "

Do not send any payment in advance. I suggest you send TT only AFTER you receive the goods and make sure that you have received what you asked for. Simple!!!!!. TT will still work, wouldn't it?

Replying to [Ranger]:

I love that sentence, I do, I do. "LC is nothing like a TT"! WoW...someone said this at last.

Replying to [pako]:

You carry ALL the risk.

So, send a TT by all means, but AFTER you take delivery.

Replying to [Catalyst]:Thank you for your advice! It is definitely my policy now – not a single dollar before documents and goods inspection. I respect suppliers’ opinion that they need assurance but at the same time no genuine and respected supplier should have a problem with L/C. It is the safest method for both parties especially when doing business first time.
Let me ask you another question Catalyst – how similar is Escrow to L/C? Thank you in advance.

Replying to [pako]:

Escrow and LC are like chalk and cheese.
However, people have their preferences, and both are in extensive use worldwide.

Do read my article in this forum on Escrow .

Replying to [pako]:
The risk of fraud in making advance payment through T/T can be reduced if you ask your supplier to issue his bank's guarantee in your favour. If goods are not shipped or are not found accoridng to specifications settled between you and your supplier, you can claim your money back from supplier's bank.
I am not sure whether this is practically possible. Catalyst must have something to say on this.

Regards

Replying to [pako]:hi pako
actually there is no such thing as security when u makwe 100% payment by tt in advance
u must have complete trust and solid relation ship with the supplier , establish his background well before commiting the payment
yes finally
still there is a doubt
then simple leve it to your fate
rgds
peter