Importing goods from China in low price and selling in way more prices is a good way to earn the profit. This business is adopted by many due to the large profit but there is a couple of things to know about. When this comes to payment then there are many methods of payment but not with China because of china’s legit. Telegraphic transfer, T/T Payment, is the common method which is used for the payment. Many companies buy loaded containers and when these are shipped to its location then complete payment is done. Chinese manufacturers accept this method of payment but there are few more methods.
What’s More To Know?
There are many good/bad outcomes of this thing because of some new rules like 30/70 TT. According to this, the customer has to pay 30 percent of the money on the placement of an order and the rest amount will be paid before shipment or the order is ready. There are many drawbacks of this system which can affect your earning that’s why you should definitely know about it. As the 30% payment is done, you have to wait until the product is manufactured. Now, they will tell you that product is ready for shipment and you have to use T/T Payment method for other 70%. Basically, this is common to have the problem in most of the manufactured products that’s why you should inspect it completely. If the products are defected then you can’t get your money.
You can ask for the refund for the defected products but this isn’t possible because they won’t return your money after payment. In such scenarios, getting the discount in next order is the only option but the same issue continues and you have to keep on working with the wrong manufacturer. This is the issue with most of the buyers that’s why they go for the lawsuit against manufacture which isn’t possible due to China’s law. Well, payment done with T/T payment method is the only option to file a report against the manufacturer.
Safe Method Of Trading with China’s manufactures
As you know that China is the most leading country which is supplying basic needs all over the world due to its cheap price and variety of products. When you pay 30% payment with T/T payment method on placing an order and 70% before the delivery then make sure that you hire a company for complete inspection. When the inspection is complete then they will send you the report and now, you can think about payment. If the product manufactured isn’t right then you can move to another manufacturer without paying the rest of money. This is the best method of working with Chinese manufacture. On the other hand, if you choose another payment method T/T payment in trade then it is considered as illegal because other methods aren’t legit. On the other hand, you can deal with a customer like you will pay 30% in advance and then there will be a second payment on the manufacturing. When the order is shipped then you can do third payment or the product is inspected then last payment will be done.
Basically, the payment frauds can be seen everywhere that’s why the government of China introduced the law of 30/70 TT. This method requires TT payment that’s why it becomes hard for merchants from other countries. Countries like the USA are facing the impact of this rule and there are very few methods which are helpful but the risk still exists.
Other Payment Method’s Risks
Few more payment method exists for trade but most of them proofed risky for suppliers/manufacturers. Well, frauds become very popular in which hackers get into the manufacturer account and sent the wrong email to the receiver with different bank account number. Due to this issue, the supplier didn’t get money but customer paid for it that’s why T/T payment method is safer in many ways.
Most of the manufacturers who are supplying goods offer you a sample of product which will help you know the quality. In order to meet with right demand and quality, you can ask them to change in product type and quality but if you don’t find any change in final product then you are able to report against them. The T/T payment methods keep the history for records and help in alleviating fraud issues. Always check the background of a manufacture and reference from people you know will provide the best detail regarding them. Trading with other foreign countries manufacturer isn’t easy because of different govt. and lawsuits but keeping some precaution can secure you from getting indulged into any fraud. When you wire the payment then you assure that your payment is reached to the right person this is why know the complete details regarding the person you are paying.
Sending Transaction Records To The Suppliers
When the product is manufactured and you are ready to supply then it’s time to wire (T/T payment) the money. When you are done with the payment then it’s time to send the record to your supplier. Basically, Chinese manufacturers require you to send the payment record instead of checking it. This is the reason you need to send the printout and it’s not a simple printout like other. There will be information like beneficiary name, address, and account number as well as transaction details. On the other hand, the paid amount is also written on the printout which ensures them that payment is done.
This is the fact that fraud exists when it comes to money and that’s why use precaution and safe methods for payment. In order to build a good relationship with the supplier, you have to trust a little and give it a try. While placing an order, try to be selective and don’t give the order for too much amount. This can be risky. When this is about the time of payment, always uses t/t payment method to stay safe and secured.