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Take an up front payment through the bank for the first order. It is exactly what is expected by Chinese companies selling to each other and when exporting. After that either up front payment telegraphic transfer (TT), or on larger orders a letter of credit, but really unless you are selling these bags for a £1000 a piece I would stick to up front payment. The UK banks are not too kind to UK small business at the moment and a bad debt hit could put you out of business.

No you do not need to visit China to sign a contract. The customer may think you are able to supply several thousand bags a month so find out what quantity they wish to contract for before signing any contract and make sure the legally binding contract is under Scottish or English law and able to be challenged only in the UK courts.

Dear calanacrafts,

I am sophie from China.As far as I know,many scammers in china(don't know if they are chinese) often cheat other peoples in this way.

At first,they will ask u to take samples to them and sign a contract with them in their address  and then they will ask u to pay their purchasing manager commission and invite them to nighclub (u pay the charges),then they will tell and ask u to buy expensive gifts(such as wine,cigarette etc) to their purchasing manager if u want to get order from them.

If they ask u to send them samples,tell them they will pay samples and shipping cost,then I think they will go away.

sophie from china