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 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 the debt. 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 method, such as accepting unreasonable payment terms in order to sign orders, allowing customers to get the goods without paying full funds. It is often the case that this step is forced by a scammer, 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 trade, but also by the majority of peers generally recognized as the most simple, intermediate procedures, the most direct way, similar to the domestic regular transactions: one party delivery, one party to give money. However, there are some drawbacks.

Defect (1): The collection of the final payment

There are two ways to collect the last payment. The first is to check the goods after the customer finishes the production. The payment is made without any problem. Then the supplier ships the goods, which is “** delivery”; the second is the inspection after the goods are finished. After shipment, the customer pays after receiving a copy of the bill of lading, and then the supplier provides the original or power delivery 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 a charge. 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. The buyer pays the redemption order through the local collection bank and then picks up the goods.

D/A, acceptance acceptance, means that the seller issues ** after shipment of the goods, together with various documents through the bank's instructions to the buyer, and the buyer can accept the documents to pick up the goods after they have accepted the **.

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 receive 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 goods and the delivery of all bills of materials, for the exporter, lost any protection in the hands. Once the customer defaults, all issues 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.