I am at Malaysia, and if someone from oversea agree to buy a big volume of goods from me, what type of payment is the safer to request, i am sure they would not pay me cash in advance.

Also, i heard there are many types of LC, what are the? and which one is the best fit to my senerio?

Best Regards,

jimmychin

 

Quoting from JC5421:

I am at Malaysia, and if someone from oversea agree to buy a big volume of goods from me, what type of payment is the safer to request, i am sure they would not pay me cash in advance.

Also, i heard there are many types of LC, what are the? and which one is the best fit to my senerio?

Best Regards,

jimmychin

 

Dear Jimmy,

Some times LC's are fraud, first check the LC with your bank and then make shipment. Generally fraud LC coming from africa and china.

We contacted a company to buy his goods.

All negotiations went good. We visited company's website but  its address was not mentioned any where.

When it comes to finalise the order, we asked the supplier to give his full address , banker's name  to transfer the money in advance.

The payment term we agree to pay advance by Wire Transfer to swieft account and after depositing the amount in suppliers account he has to ship the material.

To our surprise, He gave some other Company's name (Mentioning that our company's name has been changed) and the benificiery's name for transferring the money was of some other person (Not the company's name). It means we have to place order to some company and transfer the money to some other person.

How can we verify that the same company is accepting the money who is negotiating with us and the same person is having the account.

Can we get the details from bank or the bank will give us support ?

 

 

Quoting from sanju:

Some times LC's are fraud, first check the LC with your bank and then make shipment. Generally fraud LC coming from africa and china.

Your perspective is awfully flawed. Generalizing a whole CONTINENT is as lame as it gets. A person cannot be a fraud by location or association.

 

Fraudsters are intercontinental. Every country on this green earth got a fraudulent chump in one way or another.

Snapshot at my personal experience about stereotypes in trading:

I approached this manufacture into buy what I wanted. Products were on point; the price fits right within my budget. But one thing when we get payment methods: - "we do not accept L/C from your country" -says the gentleman with righteousness. 

 I was shocked. I could never understand how he figured out "my country", knowing that he never asked me where I was from. (Little did I know that he already knew)

 I asked him : what do you mean by "your country",  to my surprise I don't remember you asking the name of my country. The closest thing you said about my nationality was "waiguo pengyou".

With absolute confidence, he claimed I was from Nigeria.

Shaking my head in disgust, I showed him my driving license that I had at the time. He was embarrassed yet surprised to learn that being black is not necessarily equivalent to being Nigerian.

 

I started questioning dude's intellect so I walked away to seek for rational manufactures. USD 165,000 slipped on his fingers just like that.

The issues with import frauds are many. This primarily happens because after setting up great manufacturing facilities, sellers are not even keen to find out the credibility of the buyers. This can only be done by physically visiting the buyer which a rare practice in international trade and the seller is more than happy to see a fake/genuine buyer visiting his/her factory. Progressive Sellers should set up "Representative Offices" in good target markets or let thier own people fly to the respective country and check on the buyer which would not cost more that a thousand dollars. Cheers.   

Quoting fromJC5421:

I am at Malaysia, and if someone from oversea agree to buy a big volume of goods from me, what type of payment is the safer to request, i am sure they would not pay me cash in advance.

Also, i heard there are many types of LC, what are the? and which one is the best fit to my senerio?

Best Regards,

jimmychin

It is always good to get a feel of the background of the purchaser or buyer. Dont get stuck in with greedy thoughts and getting the deal seeal fast might as well seal your fate too. Fraudster are everywhere, the trap is set in a way where you would walk in voluntarily. Its up to you to see which trap to avoid.

With regards to your question. Its always good to check with the financial institution of the credibility of purchaser ****. L/C by sight by far is commonly acceptable. If any doubt, take note of UPC 500 for different type of L/C and terms.

Regards

I have made good negotiation with a seller and transfered money to him via bank. Well It's been over a month now and no product. First he responded to my emails saying that he is mailing it out next day, then again next day but now no response. I think it's safe to say I've been victim of one of these frauds.

 

Can I ever retrieve my money?

How do I report this seller to the authorities.

Please help, as this has been very frustrating for me

 

Thank you

 

Like ANY Business, whether it be DOMESTIC or INTERNATIONAL Trading, you must take the time to ensure WHO you are dealing with, is as they Represent themselves and their Company.

Ask for copies, of Business Registrations/ Certificates ( Legal Office) and Verify them Personally, with the relevent Government Body in that Country. (It is only the cost of a Phone call)

With T/T's or L/C's, ensure you are aware of the Corresponding Bank and that YOUR OWN Bank, confirms Account Details

When Ordering as either a SUPPLIER or BUYER, You take that risk, when money is involved, whether it is a NEW or Long Standing Customer. ( Always remember that a NEW or OLD Customer can OWE you money)

Use your instincts and reduce risks to a minimum. DO NOT BE AFRAID TO ASK QUESTIONS, OFTEN.

 

Quoting from oritron:

We contacted a company to buy his goods.

All negotiations went good. We visited company's website but  its address was not mentioned any where.

When it comes to finalise the order, we asked the supplier to give his full address , banker's name  to transfer the money in advance.

The payment term we agree to pay advance by Wire Transfer to swift account and after depositing the amount in suppliers account he has to ship the material.

To our surprise, He gave some other Company's name (Mentioning that our company's name has been changed) and the benificiery's name for transferring the money was of some other person (Not the company's name). It means we have to place order to some company and transfer the money to some other person.

How can we verify that the same company is accepting the money who is negotiating with us and the same person is having the account.

Can we get the details from bank or the bank will give us support ?

 

 

Dear Oritron:

You seemed puzzled but it is a usual practice at the present . Let me give you the clarification:

The previous monopolized state-owned foreign trade system has gone drastic reform and many merchants started their own business based on their formal suppliers and customers. They register and get a license for their domestic business. That doesn't necessarily mean that they automatically have the import/export permit.

Because of the current rigid management system or even red tapes, an import/export business should be subject to countless audits and  inspections from Commercial, Tax and Customs authorities. That will take up too much time, energy and extra financial cost, which is unbearable for a small-sized import/export company. The small company would trust the procesures to one professional agent company with a small payment. On the agent's side, they provide the service to many many small companies in return for some income. This is a new form of social labor division and very economical.

Therefore, you need only deal in with your business partner for whatever problems. It's none of the agent's company's business. I had such an experience. All my export procedures are done by one agent. After my customer opened the container and found the flawed goods, I took the responsibility to send the right parts and accessories and solved the problems. That's the case.

Your comment is welcome

Allan Ferryward

 

is there anything wrong with asking for escrow. i had a seller that had what i wanted at a great price but he would only accept wire transfer. i have never had international trades before and iam too scared to just wire money. any suggestions?