Sending 30% Deposit to Factory
Post 1 of 14
We are getting ready to place our order to many different factories in china. they are requesting a 30% deposit then the balance with a letter of credit.
Does anyone know how you can trust a contact or factory in china?
For Deposits or Balances? We have a Agent there now. How do we know there all on the honest level. Can we authenicate any of them.
We found the agent on this website.
Please reply to E-mail address deleted by Moderator.Please contact via TM
Does anyone know how you can trust a contact or factory in china?
For Deposits or Balances? We have a Agent there now. How do we know there all on the honest level. Can we authenicate any of them.
We found the agent on this website.
Please reply to E-mail address deleted by Moderator.Please contact via TM
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24 Jan 2007 16:26
Post 2 of 14
Replying to [Dannywild]:If you have an agent and they cannot authenicate the supplier then there could be a large problem. Has your agent not gone to the factory?
30% via TT I assume? that is not unusual but paying th balance with an L/C is in that case.
If they are willing to accept an LC then they should accept L/C for complete trade.
Seriously does not feel right. Re do your checking again and get your agent to GO to the factory!
30% via TT I assume? that is not unusual but paying th balance with an L/C is in that case.
If they are willing to accept an LC then they should accept L/C for complete trade.
Seriously does not feel right. Re do your checking again and get your agent to GO to the factory!
24 Jan 2007 19:49
Post 3 of 14
Replying to [Dannywild]:
If you pay by T/T, it's quite normal in China to be asked to pay 30% deposit and the balance after (better to pay the balance after receipt of a B/L copy by fax). In case of a L/C, don't accept to pay any deposit.
Regarding to your agent, I'm wondering how you managed to get him? You sound not so sure about him. Have you already met him in person? Seems that you just found him thru his website. Not quite good and can be dangerous.
An agent job is to make your (almost all) worries go away in China. If not, then he's not doing his job right. But one question, by agent, do you mean someone who works only for you or a trading company you are doing business with? Or have you found the factories by yourself and they don't have export right. Then you have selected an Import/Export company to help you with all export matter?
If you pay by T/T, it's quite normal in China to be asked to pay 30% deposit and the balance after (better to pay the balance after receipt of a B/L copy by fax). In case of a L/C, don't accept to pay any deposit.
Regarding to your agent, I'm wondering how you managed to get him? You sound not so sure about him. Have you already met him in person? Seems that you just found him thru his website. Not quite good and can be dangerous.
An agent job is to make your (almost all) worries go away in China. If not, then he's not doing his job right. But one question, by agent, do you mean someone who works only for you or a trading company you are doing business with? Or have you found the factories by yourself and they don't have export right. Then you have selected an Import/Export company to help you with all export matter?
24 Jan 2007 21:33
Post 4 of 14
Replying to [Dannywild]:
Thank you for your reply.
Maybe i have NOT made my self clear.
We found the Agent on this website Alibaba this web site says there authenticated.
We have found two of the factory's from witch we want to import although the agent has found the other six factories for us.
We are still sending samples back and fourth.
When it comes to sending MONEY/FUNDS we have not done that yet or We have NEVER done this. Can anyone advise us on how to do this? And the terms TTl, TT,LC were not sure how to go about this?
Please point out a link on this site or another site exsplaining the right way to go about this.
Thank you
Danny Wild
Thank you for your reply.
Maybe i have NOT made my self clear.
We found the Agent on this website Alibaba this web site says there authenticated.
We have found two of the factory's from witch we want to import although the agent has found the other six factories for us.
We are still sending samples back and fourth.
When it comes to sending MONEY/FUNDS we have not done that yet or We have NEVER done this. Can anyone advise us on how to do this? And the terms TTl, TT,LC were not sure how to go about this?
Please point out a link on this site or another site exsplaining the right way to go about this.
Thank you
Danny Wild
25 Jan 2007 11:10
Post 5 of 14
Replying to [Dannywild]:
ahhhhh
Ok if you have an agent that has checked the suppliers out then the terms are quite ok. The 30% up front is basically to cover the production run for the supplier. It pays for them to go an buy the raw materials to do the product.
A TT is sent by YOUR bank to THEIR bank. Simple operation. Mkae sure the name of the account is a company account matching the company name and not a personal name. That is BAD! Also make sure you have the SWIFT code for their account (a normal thing)
For the terms you want explained please see this thread which has everything you ask and more bsides!
http://resources.alibaba.com/topic/22817/EVERY_TRADE_TERM_FOB_CIF_L_C_etc_.htm
ahhhhh
Ok if you have an agent that has checked the suppliers out then the terms are quite ok. The 30% up front is basically to cover the production run for the supplier. It pays for them to go an buy the raw materials to do the product.
A TT is sent by YOUR bank to THEIR bank. Simple operation. Mkae sure the name of the account is a company account matching the company name and not a personal name. That is BAD! Also make sure you have the SWIFT code for their account (a normal thing)
For the terms you want explained please see this thread which has everything you ask and more bsides!
http://resources.alibaba.com/topic/22817/EVERY_TRADE_TERM_FOB_CIF_L_C_etc_.htm
25 Jan 2007 12:20
Post 6 of 14
Thank you for the link although it is not live i will try to type it into my address bar.
So we will send the money to the factory and not the Agent?
Right?
So we will send the money to the factory and not the Agent?
Right?
26 Jan 2007 09:03
Post 7 of 14
Replying to [Dannywild]:
I think chinese moderators and friends who r trustpass can help u or u can search for trustpass members from your country who dealt with this company.Seems from your words ,u dont trust the agent.The last thing u do is that u travel there by yourself.there is another option .It is to wait for the closest tradeshow and meet companies representatives there by yourself.
good luck![[em1]](http://img.alibaba.com/images/eng/style/icon/emoticons_smile.gif)
I think chinese moderators and friends who r trustpass can help u or u can search for trustpass members from your country who dealt with this company.Seems from your words ,u dont trust the agent.The last thing u do is that u travel there by yourself.there is another option .It is to wait for the closest tradeshow and meet companies representatives there by yourself.
good luck
26 Jan 2007 14:40
Post 8 of 14
This is...Danny Wild
Thank you for your reply's and input.
Yes we plan on going over there in April for a trade show in hongkong to meet and greet at show then tour factory.
(2nd) What is trust pass? is it on this site or another.
Thank you everyone for the insightful help.
Danny Wild
Thank you for your reply's and input.
Yes we plan on going over there in April for a trade show in hongkong to meet and greet at show then tour factory.
(2nd) What is trust pass? is it on this site or another.
Thank you everyone for the insightful help.
Danny Wild
27 Jan 2007 07:20
Post 9 of 14
Replying to [Dannywild]:
"TrustPass® Membership is a paid service with additional promotional advantages." according to Alibaba.com.
In due diligence forum, there are articles, discussions, questions, comments you can study. There are many ways you can authenticate/check your suppliers or agents. FYI, Trustpass Membership (even though I have one) is not 100% safe.
Good Luck
"TrustPass® Membership is a paid service with additional promotional advantages." according to Alibaba.com.
In due diligence forum, there are articles, discussions, questions, comments you can study. There are many ways you can authenticate/check your suppliers or agents. FYI, Trustpass Membership (even though I have one) is not 100% safe.
Good Luck
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28 Jan 2007 22:37
Post 10 of 14
Replying to [Dannywild]:dear dannywild
happy nice day to you!!!
dear dannywild ,if you don't worry this things,i suggestion you use l/c ,i think i can help you, i stay trading company, in my heart trading company is better than factory you find ,like that quanlity of good have garantee ,i stay trading company,
email:yangguan18@hotmail.com Deleted by Moderator
if you have question ,i can hope you
best regard
sumy
china
happy nice day to you!!!
dear dannywild ,if you don't worry this things,i suggestion you use l/c ,i think i can help you, i stay trading company, in my heart trading company is better than factory you find ,like that quanlity of good have garantee ,i stay trading company,
email:yangguan18@hotmail.com Deleted by Moderator
if you have question ,i can hope you
best regard
sumy
china
28 Jan 2007 23:00
Post 11 of 14
Replying to [Dannywild]:
Dear Dannywild,
If you approve the samples of the product, no need to delay your transaction. You can do it as follows:
You can open an irrevocable red-clause letter of credit with a clause allowing 30 % advance payment against a receipt and undertaking to be signed by the supplier. In this way you can pay your supplier 30% advance as it is a usual application in China to start the production of the goods. After the shipment, they can be paid for the rest 70% balance of the transaction by the bank upon the presentation of clean shipping documents for full invoice of the total value.
Meanwhile your agent may give you service for checking the production,quality and pre-shipment inspections of the goods, if you want so..
I hope it helps eradicate your hesitations..
Yarenimex
Dear Dannywild,
If you approve the samples of the product, no need to delay your transaction. You can do it as follows:
You can open an irrevocable red-clause letter of credit with a clause allowing 30 % advance payment against a receipt and undertaking to be signed by the supplier. In this way you can pay your supplier 30% advance as it is a usual application in China to start the production of the goods. After the shipment, they can be paid for the rest 70% balance of the transaction by the bank upon the presentation of clean shipping documents for full invoice of the total value.
Meanwhile your agent may give you service for checking the production,quality and pre-shipment inspections of the goods, if you want so..
I hope it helps eradicate your hesitations..
Yarenimex
29 Jan 2007 07:52