Hello,
Can anyone tell me which way of payment is used the most by Suplliers from Hong Kong? T/T isn't my preference because of the risk the buyer is taking but I understand that a lot of companies prefer to use this way of paying.
Thanks in advance!
Quoting from [Walter78]:Hello,
Can anyone tell me which way of payment is used the most by Suplliers from Hong Kong? T/T isn't my preference because of the risk the buyer is taking but I understand that a lot of companies prefer to use this way of paying.
Thanks in advance!
Find a supplier that you have reason to trust. Or, may be, work through a local agent who will take care of all your requirements. Also, you can use a combination of part advance, part on delivery; bills on collection (DP or DA terms); sight LCs or acceptance LCs.
At the end of the day, what is the safets for you would always be the worst for the supplier. Your supplier and yourself have to agree to a term that both are comfortable with, takes care of both the parties' risks and apprehensions. It is not an easy question to answer. It must be worked out between the two, on a case to case basis, depending on track record, existing relationship and level of mutual trust.
I do appreciate your answer. Short but very usefull. I have choosen to do it via L/C. The only problem is that my supplier doesn't want to pay their L/C costs. This means I have to pay both L/C costs. I tried to explain to them that it's better for both parties which they were aware of but they didn't give in. We do have an agreement know but I'm paying for everything now.
Quoting from [Walter78]:Walter,
For certain things we do wise and high tolerance.
But at certain points you have to go strict and tough !
Do like this: Keep in business dealing (relationship) but
When do apply the net L/C via your Bank.
Instruct them to do this :
- All charges may occur/due to the all bank transaction at the advising and or negotiating
bank (receiver) will be under account (bear) of Beneficiary.
Or All bank charges from outside countries of Issuing bank, will be under beneficiary
account.
Your buyer keep receive your L/C, but also the charge able cost that may arise there too.
If they ask to amend it ! just reply a short one:
- You take it or leave it>
It is very standard in International payment by L/C. And been oerated by mostly banks.
regards,
Quoting from [Walter78]:Hello,
Can anyone tell me which way of payment is used the most by Suplliers from Hong Kong? T/T isn't my preference because of the risk the buyer is taking but I understand that a lot of companies prefer to use this way of paying.
Thanks in advance!
Terimah kasih dan beta manilai ini comment!
Kalau ada contact di Indonesia buat textiel industry beta manilai djuga!
Well that's about the best I can do hahaha.....
I'm a starting entrepeneur and I was advised to make a small order first and to do it via L/C which would decrease the risk. Although I have read that there still are risk due this process I wasn't aware of this. So thanks again. If you have any more tips for me I would really appreciate it.
With kind regards,
Walter
Quoting from [Walter78]:This can turn out to be steep. LC does not come cheap. Do work out the costing to see if, at the end of the day, the trouble would be worth it. (You can't bleed through every transaction!!) If it is going to be a long term relationship, as it should be, then it should be a win-win for both. If not, find another supplier who would deal with you fair and square.I do appreciate your answer. Short but very usefull. I have choosen to do it via L/C. The only problem is that my supplier doesn't want to pay their L/C costs. This means I have to pay both L/C costs. I tried to explain to them that it's better for both parties which they were aware of but they didn't give in. We do have an agreement know but I'm paying for everything now.
Quoting from [Walter78]:Hello,
Can anyone tell me which way of payment is used the most by Suplliers from Hong Kong? T/T isn't my preference because of the risk the buyer is taking but I understand that a lot of companies prefer to use this way of paying.
Thanks in advance!
Yes I do agree that it should be a wn win situation but I will only use an L/C the first time. After the first order I will do it differently because you are right about the price. It is expensive.Because of the small order I'm paying almost 20% of the total price of my order.
What do you advise me to do with the next order T/T?