My capital is less than 10000$, so I am afraid
Post 1 of 22
I am betya,a filipina.
i want to supply a fern tray or it can be use as plates with wax paper over it or it can be use in fruit packing. stronger than bamboo.
My question is: how can i be sure my buyer will not back off? what documents shall i need to my assurance. my capital is less than 10000$. i am afraid if my buyer will back off where will i sell my product? pls advice me . tnx
Award 10 MVPs (
What's this?
)for the best answer.
04 Mar 2008 05:24
Post 2 of 22
You would need to prepare samples before getting an order but you generally would only purchase raw materials and start production of an order after confirmation of that order by way of financial commitment from the customer. There are two standard ways to get financial commitment from customers:
a. 30% TT deposit which should at least cover your costs in purchasing the raw materials and some production if the buyer does disappear;
or
b. LC in which case the money for your order is guaranteed provided that you make what the order stipulates. The buyer cannot pull out unless you fail to deliver as agreed.
None of this is a guarantee but both are pretty standard and safe payment practices for both sides.
Do not produce an order unless you get the above commitment from the customer.
a. 30% TT deposit which should at least cover your costs in purchasing the raw materials and some production if the buyer does disappear;
or
b. LC in which case the money for your order is guaranteed provided that you make what the order stipulates. The buyer cannot pull out unless you fail to deliver as agreed.
None of this is a guarantee but both are pretty standard and safe payment practices for both sides.
Do not produce an order unless you get the above commitment from the customer.
04 Mar 2008 06:41
Post 3 of 22
Replying to [betya]:
a. 30% TT deposit which should at least cover your costs in purchasing the raw materials and some production if the buyer does disappear;
b. LC in which case the money for your order is guaranteed provided that you make what the order stipulates. The buyer cannot pull out unless you fail to deliver as agreed.
Hope it would help you.
![[em17]](http://img.alibaba.com/images/eng/style/icon/emoticons_shake_hands.gif)
a. 30% TT deposit which should at least cover your costs in purchasing the raw materials and some production if the buyer does disappear;
b. LC in which case the money for your order is guaranteed provided that you make what the order stipulates. The buyer cannot pull out unless you fail to deliver as agreed.
Hope it would help you.
04 Mar 2008 19:16
Post 4 of 22
Replying to [betya]:only if u got whole permits to run your company, u can export. but if u mean, for the less of registeration capital, u have no right to export. then u need give up.
if u got the local permition to sale, u first find your customer not be afraid of your mini factory. most customer pay more attention to the quality of the gooods, not the scale of the factory.
if u got the local permition to sale, u first find your customer not be afraid of your mini factory. most customer pay more attention to the quality of the gooods, not the scale of the factory.
05 Mar 2008 00:07
Post 5 of 22
Replying to [betya]:only if u got whole permits to run your company, u can export. but if u mean, for the less of registeration capital, u have no right to export. then u need give up.
if u got the local permition to sale, u first find your customer not be afraid of your mini factory. most customer pay more attention to the quality of the gooods, not the scale of the factory.
if u got the local permition to sale, u first find your customer not be afraid of your mini factory. most customer pay more attention to the quality of the gooods, not the scale of the factory.
05 Mar 2008 00:08
Post 6 of 22
Replying to [betya]:What Egermia is correct, you do start the production unless you receive the 30% or 40% deposit first. On your quotation, remember to quote this:
"Deposits are not refundable."
If it is a sincere Buyer, this term won't scare him away. Believe me becuase I always do this and my clients have no complain.
As for L/C, do use established international bank from both sides for payment, avoid using the small local bank from the Buyer. Just in case you want to be sure, you can pay your banker to do a search for you. The bank will charge a small fee.
Actually, you can rest all your worries by approaching your banker and have the official to explain and guide you. They want your business too afterall, they charge for every transaction.
Ask for BACK TO BACK L/C from the banker.
Bear In mind, all business regardless of size or amount, is a business. Be confident!.
"Deposits are not refundable."
If it is a sincere Buyer, this term won't scare him away. Believe me becuase I always do this and my clients have no complain.
As for L/C, do use established international bank from both sides for payment, avoid using the small local bank from the Buyer. Just in case you want to be sure, you can pay your banker to do a search for you. The bank will charge a small fee.
Actually, you can rest all your worries by approaching your banker and have the official to explain and guide you. They want your business too afterall, they charge for every transaction.
Ask for BACK TO BACK L/C from the banker.
Bear In mind, all business regardless of size or amount, is a business. Be confident!.
05 Mar 2008 01:07
Post 7 of 22
Replying to [betya]:What Egermia is correct, you do start the production unless you receive the 30% or 40% deposit first. On your quotation, remember to quote this:
"Deposits are not refundable."
If it is a sincere Buyer, this term won't scare him away. Believe me becuase I always do this and my clients have no complain.
As for L/C, do use established international bank from both sides for payment, avoid using the small local bank from the Buyer. Just in case you want to be sure, you can pay your banker to do a search for you. The bank will charge a small fee.
Actually, you can rest all your worries by approaching your banker and have the official to explain and guide you. They want your business too afterall, they charge for every transaction.
Ask for BACK TO BACK L/C from the banker.
Bear In mind, all business regardless of size or amount, is a business. Be confident!.
"Deposits are not refundable."
If it is a sincere Buyer, this term won't scare him away. Believe me becuase I always do this and my clients have no complain.
As for L/C, do use established international bank from both sides for payment, avoid using the small local bank from the Buyer. Just in case you want to be sure, you can pay your banker to do a search for you. The bank will charge a small fee.
Actually, you can rest all your worries by approaching your banker and have the official to explain and guide you. They want your business too afterall, they charge for every transaction.
Ask for BACK TO BACK L/C from the banker.
Bear In mind, all business regardless of size or amount, is a business. Be confident!.
05 Mar 2008 01:08
Post 10 of 22
Replying to [betya]:
Dear Betya:
Do not buy sample just send brochure only to your buyer and send them your price list. As soon as they Purchase Order ask them an LC or T/T
50% down or 30% then the balance will be paid upon shipment.
Dear Betya:
Do not buy sample just send brochure only to your buyer and send them your price list. As soon as they Purchase Order ask them an LC or T/T
50% down or 30% then the balance will be paid upon shipment.
05 Mar 2008 09:21
Post 11 of 22
Replying to [betya]:Try to contact your local gov or banks! Ask your client to give you a Letter of Credit from their bank and work with your local bank for there...
05 Mar 2008 19:58