Hi there,

I am new into this area, i am looking to buy new machines from china to expand new area in my current bussines, i have not bought any thing from china since now, i am looking buying few factory machines that cost lots of money , i have a quote from a manifacture in china, and they are ready to make my machines but they are asking me for "Payment terms: 40% T/T as down payment, 60% by irrevocable L/C at sight", i have no idea, whats this terms means, can any one please please explain to me to this terms? i am very aware not to be frauded, how can i trust to them and how this payments works??

looking forward to your comments??

Many many thanks

kodra

Hello,


40% downpayment T/T means, you pay 40% of the total price in advance (as a deposit) by bank transfer. L/C at sight means a Letter of Credit - in this your bank proves that you have the money and the supplier gets the money only if he delivered according to the L/C conditions. Ask your bank for details on T/T and L/C (L/C has certain costs). This is a fair payment method in China, however if you want to increase your safety involve a third-party inspector for quality inspection at delivery.


Additionally, since you are buying machines, have you considered warranty, repair, spare parts, available accessories, compatibility with your electric network etc.?


c[ ]

well, the payment terms sounds goods, but you can try to negotiate with them for 30%, the less you deposit to them the less risk you would suffer. if you find it hard for you to operate on LC, you can TT the balance after an inspection.

If you are afraid of fraud, you 'd better send one or thrid party to help you verify the factory, or know how is the situation of the factory.

Quoting from [Gabor Bathori]:


Hello,



40% downpayment T/T means, you pay 40% of the total price in advance (as a deposit) by bank transfer. L/C at sight means a Letter of Credit - in this your bank proves that you have the money and the supplier gets the money only if he delivered according to the L/C conditions. Ask your bank for details on T/T and L/C (L/C has certain costs). This is a fair payment method in China, however if you want to increase your safety involve a third-party inspector for quality inspection at delivery.



Additionally, since you are buying machines, have you considered warranty, repair, spare parts, available accessories, compatibility with your electric network etc.?



c[ ]

 

thank you for making this to me very clear, i will talk to my bank about this, and also thank you for mention about  additional machines parts, they do cover one year warranty, and also i will make sure i have some spare parts,

Many thanks for your great support, by the way if a supplier is marked as gold supplier from alibaba.com does this means is a good supplier or its just a name?

thanks

kodra

Neither Gold Member nor Trust Pass means anything in terms of your security!!! Believe what you see, and hire an inspector to verify the partner and inspect the quality of your products on site.


c[ ]

trust what you see and what you feel, not the figure

Thanks for your believe! But I think we are becoming not believe any person.Why?

FOR the increasing bam or our fewer communication ,or others.

How to change this?

You do need to know more about the company you are going to order products.

It would be much easier for any Chinese to learn and find out whether a supplier is a serious one or not.

Alibaba's TrustPass or Golden Supplier can prove you one thing: The company should really exist. But how they operate and how about their quality? This is a task need much tech and experience, not the function of a platform like Alibaba.

So third party inspector is a good alternative.

 

 

Firstly, they must be Alibaba’s Trust pass or Golden Supplier.

 

Second: They must have their own fty.

 

Thirdly: They can supply the relative License. Such as Business License/Tax Registration Certificate/Inspection Certificate of Quality(such as ISO9001-ISO2000 Quality Management System). They must have their own import-export right. These are basic conditions for fty to export goods to aboard.

 

Fourth: You ‘d better have you QC to inspect the Quality of the goods before the goods released.

 

If the above four conditions are satisfied, you can accept his payment method. No matter pays by T/T or L/C. That‘s will be OK.

 

Quoting from [ntzk08]:




 

Firstly, they must be Alibaba’s Trust pass or Golden Supplier.

 

 

Second: They must have their own fty.

 

 

Thirdly: They can supply the relative License. Such as Business License/Tax Registration Certificate/Inspection Certificate of Quality(such as ISO9001-ISO2000 Quality Management System). They must have their own import-export right. These are basic conditions for fty to export goods to aboard.

 

 

Fourth: You ‘d better have you QC to inspect the Quality of the goods before the goods released.

 

 

If the above four conditions are satisfied, you can accept his payment method. No matter pays by T/T or L/C. That‘s will be OK.

 

 

Not exactly! Must they be Alibaba’s Trust pass or Golden Supplier?

u can judge if they are factory or trading company.

Do u require them to have certain test reports, better from international lab?

no idea it they are necessary in machines.

Better they have.

Machines have may problems, maintenance, set up and set apart. service etc. Are you sure u can manage them all on ur own?

My friend told me some foreign buyers dont know how to set up and assemble even they have manuals.

Seems u also dont know operation of L/C too much, but ur bank can help u, my friend.

For safety, u better choose big factory. I personally think u need someone to inspect before shipment and even their factory.

is great trouble and cost of shipping shoddy parts or machine back .

Good luck to you.