Recently, We got an order from a new customer in Turkey.But we have a disagreement on the payment terms.Finally,it ends in silence.

[We request  that :30% up front once comfirm the order and we hope they can designate people to come for the inspection of the goods and pay us the balance before the shipment.]

Is it too much to ask? The customer cannot accept it.But we just want to protect our interest only.We konw much of the customers in Turkey deal with L/C at sight or cash against document is unreliable. Some of them will refuse to pick up the goods at port and bid them back in a much low price from the public sale. It would cause a loss for us.

And this customer insist on payment L/C at sight or cash against document. Would it be a scammer? I did check his credit,only we get is a seems-real website.

Is there any one could provide me some precious ideas on more secure payments? And some other methods to make sure he's believable or not?

Thanks for all your generosity. Pls accept my best wishes.

Chris

Quoting from [tengya02]:

Recently, We got an order from a new customer in Turkey.But we have a disagreement on the payment terms.Finally,it ends in silence.

[We request  that :30% up front once comfirm the order and we hope they can designate people to come for the inspection of the goods and pay us the balance before the shipment.]

Is it too much to ask? The customer cannot accept it.But we just want to protect our interest only.We konw much of the customers in Turkey deal with L/C at sight or cash against document is unreliable. Some of them will refuse to pick up the goods at port and bid them back in a much low price from the public sale. It would cause a loss for us.

And this customer insist on payment L/C at sight or cash against document. Would it be a scammer? I did check his credit,only we get is a seems-real website.

Is there any one could provide me some precious ideas on more secure payments? And some other methods to make sure he's believable or not?

Thanks for all your generosity. Pls accept my best wishes.

Chris

Dear Chris,

It could be impractical to expect every buyer to find the right person to depute to the seller's site, to every corner of the globe from where he intends to procure goods. Do look at it also from the buyer's point of view, his cost and convenience.

The offer of a sight LC is quite in order and should be acceptable to you. It is the best way to do business with a new party. Just a few points to note:

1. Make sure that it is a sight LC, available with your bank or a bank in your city.
2. That the LC has been issued by an internationally reputed bank in Turkey. Your bank can be of help here and guide you.
3. Ask your bank or an expert to check the LC on receipt that the clauses are "OK".
4. If you wish to be extra cautious (not necessary, actually), before the LC is issued, you may also ask your bank to do a credit check on the buyer. For this, get your buyer's bank's name, and also ask them if a credit check with his bank (by your bank) would be OK with them.
5. Going even a step further (how cautious can one be!), you could ask that the LC be confirmed by a bank in your city.

Good luck!

Chris,

Catalyst is correct!!! A sight L/C is the standard payment term which should be acceptable for any legitimate exporter. I had worked as both an exporter and importer and I have no reason not to agree on a sight L/C from either side. If you have doubts on the authenticity of your buyer and the offered L/C, you can always ask your bank to credit check this before you go into the production as Catalyst had suggested.

The only reasons I can think of why exporters would not accept L/C's

a)  they have no confidence in their ability to meet deadline for time sensitive products (i.e. garments for a particular season). By insisting on a deposit, they leave the buyer no choice but to accept the shipment even if it is already delayed. 

b) they need the deposit as they have little or no capital to produce the ordered goods.

Quoting from [Catalyst]:

Quoting from [tengya02]:

Recently, We got an order from a new customer in Turkey.But we have a disagreement on the payment terms.Finally,it ends in silence.

[We request  that :30% up front once comfirm the order and we hope they can designate people to come for the inspection of the goods and pay us the balance before the shipment.]

Is it too much to ask? The customer cannot accept it.But we just want to protect our interest only.We konw much of the customers in Turkey deal with L/C at sight or cash against document is unreliable. Some of them will refuse to pick up the goods at port and bid them back in a much low price from the public sale. It would cause a loss for us.

And this customer insist on payment L/C at sight or cash against document. Would it be a scammer? I did check his credit,only we get is a seems-real website.

Is there any one could provide me some precious ideas on more secure payments? And some other methods to make sure he's believable or not?

Thanks for all your generosity. Pls accept my best wishes.

Chris

Dear Chris,

It could be impractical to expect every buyer to find the right person to depute to the seller's site, to every corner of the globe from where he intends to procure goods. Do look at it also from the buyer's point of view, his cost and convenience.

The offer of a sight LC is quite in order and should be acceptable to you. It is the best way to do business with a new party. Just a few points to note:

1. Make sure that it is a sight LC, available with your bank or a bank in your city.
2. That the LC has been issued by an internationally reputed bank in Turkey. Your bank can be of help here and guide you.
3. Ask your bank or an expert to check the LC on receipt that the clauses are "OK".
4. If you wish to be extra cautious (not necessary, actually), before the LC is issued, you may also ask your bank to do a credit check on the buyer. For this, get your buyer's bank's name, and also ask them if a credit check with his bank (by your bank) would be OK with them.
5. Going even a step further (how cautious can one be!), you could ask that the LC be confirmed by a bank in your city.

Good luck!

Dear,Catalyst,

Thanks for your great contribution.It's really a big help for me as a green hand on tradeing. But as we all know,most of the countries have gotten involved in the world financial tsunami.Many companys, even banks, have been bandkrupted.It seems appear to a credit crisis.So our boss trys to guarantee the payment for goods as the other supplier in China.I read a Post in Ali. forum about the payments.Almost all the replyers would prefer to use %TT first no matter where they come from.It really frustrate me..haha..

But any way,you absolutely did a great help to me. Thanks for your idea.

Yours truly,

Chris.

Quoting from [gcc888]:

Chris,

Catalyst is correct!!! A sight L/C is the standard payment term which should be acceptable for any legitimate exporter. I had worked as both an exporter and importer and I have no reason not to agree on a sight L/C from either side. If you have doubts on the authenticity of your buyer and the offered L/C, you can always ask your bank to credit check this before you go into the production as Catalyst had suggested.

The only reasons I can think of why exporters would not accept L/C's

a)  they have no confidence in their ability to meet deadline for time sensitive products (i.e. garments for a particular season). By insisting on a deposit, they leave the buyer no choice but to accept the shipment even if it is already delayed. 

b) they need the deposit as they have little or no capital to produce the ordered goods.

Dear 9cc888,

Thanks for your attention and the kindly reply on my post.Pls accept my best wishes for you.

Sincerely,

Chris.

From Tengya   Many companys, even banks, have been bandkrupted.It seems appear to a credit crisis.So our boss trys to guarantee the payment for goods as the other supplier in China.I read a Post in Ali. forum about the payments.Almost all the replyers would prefer to use %TT first no matter where they come from.It really frustrate me..haha..

Chris,

If you are worried about this possibility, ask your customer to have the L/C confirmed by BANK OF CHINA!!!. This way, even if their company or their bank goes bankrupt, you can claim payment from Bank of China