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

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Quoting from [Gabor Bathori]:


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[ ]

Well Kodra

I read your query and your concerns are very genuine. I have been doing business with China from quite some time. If the supplier is genuine, then your mentioned payment terms may work well. But I would give you a better advice.

Instead of any down payment, insist on 100% Sight L/C payment.

You'll have no. of benefits in this.

First of all, your complete deal will be on record and thru the bank. The key things like price, time and term of delievry, quality reports etc. would be mandatory for the transaction, as what you may negotiate with your supplier. By routing the whole deal through the L/C, the supplier cannot take you on a ride as in delya the shipment or in adverse case, dictate his terms in any kind, which might not have been discussed earleir.

If in course, the supplier tries to create a problem, you can simply just cancel the order, and your money will be safe. Other wise, with your advance payment with him, he can dictet his terms like simplest, delay your shipment. And since you have already paid him some advance, you will have to amend the LC as per his request.

Believe me, this can get out of control any time.

Also the supplier has nothing to loose with 100% L/C, since they can easily get advance from their bank against the L/C. So you must not give them any down payment.

Also for quality, you must have a third party inspection agency who has an experience in this line.

You must have all the details of spares etc. before finallizing the order. The type and kind of packaging and packing etc. everything must be discussed before hand.

Warranty thing wont be helpful, since you cant expect the chinese supplier to provide you any sort of service overseas.

Also the best thing would be to check with your collegues in your own country who are in similar production line to order machine froma reputable supplier, and whose machines are already in your local region ( if in case any). In this way you'll be able to get ppl to even service your machines, or spares etc. easily available in your own area. This will help you in the long run.

I hope above is helpful. If you have any concerns, feel free to contact.

Thanks

Tarun Dalmia

Hi, Kodra,

It's normal in China when doing export trade. First time buyer will have to pay 30% or higher pencentage as down payment and balance paid before shipment by T/T or by L/C at sight.

If this manufacturer is a alibaba.com gold supplier, then this company will not have the problem you warried a lot(99%).

Or we will be glad to check the credit of this manufacturer for you. 

We are a professional machinery purchasing agent in Shanghai.

Regards

Jason Wang

0086 1592 1221 363

sale@gensetparts.com  

Quoting from [kodra]:

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

 

Hi Mustafa,

 Mire Dita, Edhe gezohem te jesh mire,

 Thank you for making this clear to me, at the moment i have suppliers from turkey the most reliably supplier I have all the trust and we almost are a family.

 I have a plan to develop a new product release in my country, and  I need all the process line machines (about 25 machines) the quote i have from which its lots of money, to do this I need a trusted supplier from china, as this it will be my first trip to china, i need few tips to be aware in china, thank you to all of u to be aware not to be scammed in china

 I will plan to hire a third party to inspect this company; few of those great people have advice me to hire one of those two companies Dun&Bradstreet or SGS.

I would like to thank you to all of you which have spend your busy calendar to give some great tips all those tips I have taken into my consideration, I hope everything it will go ok

 Many thanks

 kodra

Hello, there!

you  order some items from that factory and they will start to make them for you, but who knows you will surly buy them after those items finished.

Quoting from[Jack Yue]:

Quoting from[kodra]:

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

Everything depends on your correctly judgement,sir!!! Credit and loyaltyare both equal important for a successfully besiness deals!!!

Good luck,man!!!

THIS IS TYPICAL CHINESE COMMENT in english it means buyer beware When a foriener gets ripped off they think its great they have no comprehension of what its doing to china reputation

YOCHI was very nice to me untill my payment was recieved from that time on i was/am being treated like a piece if crap