LED lighting companies can not help but "foreign trade traps"

Not only LED foreign trade, all foreign trade, foreign customers drag money is a common thing, drag a few days to say, drag on a few weeks or even months to want to repay, then this matter is relatively difficult to deal with. Recently, a foreign trade woman actually flew directly to Bangladesh in order to catch up with debts. She also lived on the forum to broadcast the debts overseas and had to admire its perseverance.

The vast majority of fraudulent foreign trade is caused by problems in the payment methods, such as accepting unreasonable payment terms in order to sign orders, allowing customers to get the goods without paying the full amount. It is often the case that this step is forced by the swindler, so that you can only choose to trust the customer in a particular environment. The swindler's bureau has given you no other choice. Therefore, first of all, you should know the advantages and disadvantages of several payment methods in foreign trade.

LED lighting companies can not help but "foreign trade traps"

Foreign trade payment method

1, T/T

Wire transfer, also known as wiretransfer, means that the sending bank should apply for a remitter to pay a lump sum to the payee. This is the most common in trade, and it is recognized by the majority of peers as the simplest, least intermediate, and most direct way, similar to the domestic routine trade: one party delivers, one party gives money. However, there are some drawbacks.

Defect (1): The collection of the final payment

There are two ways to collect the final payment. The first is to check the goods after the customer finishes the production and pay the bills without any problem. Then the supplier ships the goods, which is called “loan delivery”; the second is the inspection after the goods are finished. For goods, the customer pays after receiving a copy of the bill of lading, and then the supplier provides the original or power supply for the customer to clear the goods at the port of destination and receive the goods. Both of these are risky. What if the first supplier does not ship after receiving the money? If it is FOB, after receiving a copy of the bill of lading, the customer will take the shipment and take it away without giving money. What should I do?

Defect (2): Payment Arrangement for Large Orders

For large orders, the choice of T/T is even harder, mainly involving orders. If an order costs $1 million, will the customer accept a 30% deposit? It is difficult to estimate.

2, L/C

A letter of credit refers to a written guarantee document issued by an issuing bank to a third party that contains a certain amount of money and meets the prescribed documents within a certain period of time, in accordance with the requirements and instructions of the applicant. Letter of credit is the most complicated payment method in international trade and it is also a relatively high factor of safety. However, there are some drawbacks:

Defects (1): complicated procedures

Because it involves at least four roles: the credit applicant, the issuing bank, the notice bank, the beneficiary of the letter of credit.

Defect (2): Problems with soft terms

The soft terms are terrible and cause great losses to the company. Therefore, the documentary personnel must be careful and careful during the verification process to ensure that no mistakes can be made to arrange production. If there are disputed areas, it is necessary to ask the customer in advance to discuss the amendment of the letter of credit.

Defect (3): Disagreement

In general, there are discrepancies. Although theoretical discrepancies can be avoided, in actual operations, it is almost impossible to meet with a letter of credit negotiated completely without any discrepancies. In general, any difference between a document and a letter of credit can be called a discrepancy, such as a letter or a punctuation. Banks have reasons to use this as a discrepancy and deduct funds. In general, it may be 50 US dollars or more.

3, D/P&D/A

D/P, payment presentation, means that the seller submits the relevant documents after shipment to the bank, and the buyer pays the redemption order through the local collection line and then picks up the goods.

D/A, acceptance acceptance, means that the seller issues bills of exchange after the shipment of the goods, together with various documents through the bank's instructions to the buyer, and the buyer can take delivery of the documents on acceptance of the draft.

Although the operation of D/P and D/A is much simpler than a letter of credit, the cost of an advising bank is also reduced. However, the bank does not assume any risk in the collection process.

4, O/A

Refers to the exporter after the goods shipped, the real right certificates and related documents directly to the importer, and after a certain period of time to the importer to collect payment of a payment method. Can be understood as "credit".

O/A is the most risky of all payment methods. After all, the first shipment of the goods and the delivery of all the documents, for the exporter, will lose any protection in the hands. Once the customer defaults, all problems will be borne by the exporter.

Foreign scams commonly used tricks

1. The content of the e-mail relates to a large amount of money that has been managed to be transferred from other countries.