Payment methods in importing business
HOW CAN I PAY FOR GOODS IN CHINA?
Chinese live from money as the same way as you, and the unbelievable amount of money got to China on some kind if routes. Now you have soe options how you can pay for your desired goods for your supplier but you have to know, that some payment routes are not safe and can open possibilities for cheaters. You can figure out if someone is cheater or not by the suggested payment methods indeed. For further information, check out our tutorial of IIY training course, where all detials are given and you can be sure to make a good business with overseas purchases, imports. Have a look on our Warm-up section to see what it contains to help you through the whole process step-by-step.
You can send money to them through your bank just as you would to your daughter who stays in Ibiza a week more cause of the sunsine and party. Your partner will give the bank account number, bank’s name and address, where you can send the money right after. In some cases you might be given IBAN, SWIFT, BSB numbers as well but you should prepare for not get them all as they not all have it, but you do not have to be afraid, they get the money for sure. This is still the safest way to pay for the goods if you pay by wire transfer.
The slogen of PayPal is, that it is a safer, easier way to get paid, but actually even it is safe, to send 100.000 USD maybe you should be away from it. Might be very good to send money for samples or anything which costs less. But you should be sure in the reliability of the partner first.
NEVER! As some rows before I mentioned an example with your daughter, you can use this method, but NEVER use it for sending money to overseas to a never-seen person. Huge amounts through Western Union will probably go away. Why? There is nothing, the receiver should show to identify himself to get the money. Not even an ID. Only a transaction number and a sender name (not sure, but some like that). If your partner says, the money is nowhere, you will not be able to prove, he took the money already. Also if the goods never arrive to you, you will never be able to prove that he took the money in return.
Letter of Credit is quite a good way to be sure of your goods to arrive and also good for the supplier to get the money in 100%. Leter of credit is an agreement between the supplier’s and your bank, that in case you got the subject of the payment (goods in this case) you will pay. To be able to make the promise, on your bank’s side, they might block the amount from your side. Actually the money leaves your account, but not received on the other side. So if there would be any problem, you say your bank, that the payment shouldn’t be paid, then the money will not be released. In this case an investigetion will start, you will have to prove, that the problem occured, and the other side has to prove, it hadn’t. The reason why they used to like this method is, that a partner, who agrees an L/C payment term, will probably do everything to get the money, not to have a problem around it.
Would you like to know more about the importing business? Read our articles and have a look on our course, the ultimate know-how of importing business from overseas, the IIY training.
