Quoting from [oleg1]:
Its anybody can tell me why companies in China do not exept LC payment. I am trying to buy some items and whent it comes to money they want 30% in advance and 70% after loading. When I ask for LC they said they don't do LC. But on another hand they can not provide any guarantees to me that I am not going to loss this money. Please tell me why they don't want LC and if any other payment plans I can offer them which going to make me secured and they will agree. Thank you.
L/C is good for a large order but, from what I see they have offered you a D/P payment which is 30% advance via T/T and the documents for the shipment once your bank pays the draft, or is it they want something else? D/P is good for a buyer if a supplier offers payment this way. But remember its up to you to do your own due diligence or confirm via either factory audit or pre-shipment inspection or both that:
- They can supply what they say they can
- That what your paying for is of an acceptable quality for you to re-sell
Ranger
Me Tech Supply
ME Tech Supply a D. B. A provides sourcing solutions for both small and medium sized businesses. We are members of the GSAA whose Agents have verified more than 2. 5 million companies World WideWe offer low cos...
More
Quoting from [oleg1]:
Its anybody can tell me why companies in China do not exept LC payment. I am trying to buy some items and whent it comes to money they want 30% in advance and 70% after loading. When I ask for LC they said they don't do LC. But on another hand they can not provide any guarantees to me that I am not going to loss this money. Please tell me why they don't want LC and if any other payment plans I can offer them which going to make me secured and they will agree. Thank you.
1.They want use D/P payment because they need capital to produce your order,
2. for small order (DP payment) this way is simple way and time for shipment the goods is flexible. ( if use L/C = time has limit, if late shipment =discrepancy) They can ship the goods after the goods ready.
3. Before you pay T/T i suggest you find as much as information about your supplier from google search, yellow pages in their country,etc. if your suplier qualified, you offer them to minimize your risk. with D/P 15% or 20% and balance payment after shipment.
and If you have acquaintance = shipmet agent, your supplier must use your agent in order to you can track that the shipment has done.
yea, as the supplier all of us choose the T/T not L/C,but i don`t know the reason.Maybe there is much trouble by L/C, just like Davadi said use L/C = time has limit, if late shipment =discrepancy ,
actually sometime we have finished all the items, didin`t receive the remain payment, or we sent out all the items to them ,and they have received items,but they still haven`t make the remain payment.of course this kind clients ,they have visit our factory or we do the business several times.