i have find a supplier , he is gold supplier , i want to buy container load 20000 usd valued goods from his company , his payment terms is 30% T.T. and rest 70% L/C at sight , now the question is , for the start i am buying only LCL say about material valuce of 1000 usd as a trial order , what do you think this 1000 usd should be paid in advance or i can pay LETTER OF CREDIT , L/C , i have never deal with this company, please give me your suggestions , can i pay this amount as L/C .

I just make a quick calculation for the cost of issuing L/C when the amount is $1000. Here in Hong Kong, it costs approx. US$160.- And this is for your end. I am not sure the cost for the supplier end. I don't think your supplier will accept this payment term when the amount is $1000, unless you pay for their bank charges too.

Anyway, the point to trust a company is not just base on payment term. Their quality and the delivery time is more important. 30/70 by T/T remittance is reasonable for the payment term. If it is first time deal, then ask for more samples before the delivery. If for some reason, sample cannot be sent, then ask for more pictures. I believe your supplier would be happy to do that for you.

rajaram wrote:

i have find a supplier , he is gold supplier , i want to buy container load 20000 usd valued goods from his company , his payment terms is 30% T.T. and rest 70% L/C at sight , now the question is , for the start i am buying only LCL say about material valuce of 1000 usd as a trial order , what do you think this 1000 usd should be paid in advance or i can pay LETTER OF CREDIT , L/C , i have never deal with this company, please give me your suggestions , can i pay this amount as L/C .

We are a mouse and webcam supplier.   Usually, the bank charge of LC is around 300 -400 USD . Sometimes  it has to be more if there is any amendant or discrepancy.   So, I donot think it is acceptable to accept an order of usd 1000 by LC. 

Learn more about your supplier from different way to check if they are realiable.  It is good to keep careful during foreign trades, since there are really some "cheater" disturbing our market and spoiling our trust.  But if you find a realiable partner, try to make everything easier for both .

Quoting from [rajaram]:

i have find a supplier , he is gold supplier , i want to buy container load 20000 usd valued goods from his company , his payment terms is 30% T.T. and rest 70% L/C at sight , now the question is , for the start i am buying only LCL say about material valuce of 1000 usd as a trial order , what do you think this 1000 usd should be paid in advance or i can pay LETTER OF CREDIT , L/C , i have never deal with this company, please give me your suggestions , can i pay this amount as L/C .

One of our buyer has good example in similar case. They always purchase on 100 % T/T.  And in the first place as a general case we and they had any doubt for how to trust each other. We had offered them to select one carrier(forwarder) and to make forwarder check in apparent the receiving cargo from us for loading. After that buyer transmit money by confirmation of forwarder. Also after receiving the money we confirm forwarder to load. Finally we and buyer are doing trade very well.

So please select a forwarder who has a partner in the location of supplier. And do in same manner set forth.

Jay

 

maliit man o malaking kalakalan nagagailangan nang pag iigat sa larangan na pabili at pag babaya,kaya para sa akin ,at para na rin sa mag supplier maganda ang 30% na paunang bayad at ang kapupunan bago tanggapin sa pintuan nang bumili.nana saganuon.mas mabuting usapan ,at mas lalo maganda kung sigurado ang supplier na masisiyahan ang kanyang mamimili.

Jayhawk is talking reality,very good advise!

Jayhawk : you are the man!!!
I like that advise,i feel like a retard saying to myself"why didnt i think of that"