import-export business - what payment terms?

[getitstraight]

Hi. Question for all those importing or exporting wholesale. What payment terms are the most common? Which terms do you prefer (but not always get or provide)?
Is there a difference in usual payment terms depending on location? Meaning that you would do one terms in EU-EU transaction, but different payment terms in EU-Asia transaction?
thanks

 

[hotsexylingerie]

In international business, we usually accept FOB or CFR which are applied mostly. Usually 30% TT in advance for confirmation, and 70% before shipping. If buy goods online, such as lingerie, costumes products etc. It's always pay online.

 

[james1980uk]

Many of our import clients purchase goods FOB from the factory in China, with some other purchasing Ex-Works. I would avoid CIF or C&F because this can an expensive option once the vessel arrives in the UK, due to excessive arrival charges. In addition you will not be in control of the shipping and leave yourself vulnerable to the substantial arrival charges that you could incur.

If you have any other questions I'd be happy to help.

Kind regards
James

 

[fortuneluck]

I just use paypal only!

 

[getitstraight]

Many of our import clients purchase goods FOB from the factory in China, with some other purchasing Ex-Works. I would avoid CIF or C&F because this can an expensive option once the vessel arrives in the UK, due to excessive arrival charges. In addition you will not be in control of the shipping and leave yourself vulnerable to the substantial arrival charges that you could incur.

If you have any other questions I'd be happy to help.

Kind regards
James

Hi. What about Europe to Europe purchases? For instance if one buys from Germany to UK. Whats the most common payment terms? 30% upfront for "order confirmation" and then 70% after pallets are loaded in truck and ready to go? Truck starts moving only after 100% of payment is in exporter's bank account?
Thanks

 

[BLintl.]

It all depends on the agreements between the buyer and the seller. There is no standard payment method. Also depends on the financial standing of the supplier and the buyer. Being a supplier you, probably, will not take a chance with a new and unknown buyer and sell to him on credit. You will demand either L/C or pre-payment or L/G. Does not matter where the counterparties are located.

 

[Mefi]

I do not wish to hijack this thread, but I think my question is relevant and may of use to the OP.

If one was shipping products to retail food shops for the EU, when would such customers of this kind generally pay up the bill? Only when the good is recieved? Can you suggest ways to have them pay in advance (to some extent). We are thinking of offering a major discount in case of advance payment. Do you think that could be feasable?

Thanks in advance.

 

[Mefi]

From my part I can contribute this.

Our suppliers vary their payment requirement based on their method of production. Some start making the good as they recive the order. These ask 50% payment when the order is processed, and the remaining 50% when it is shipped.

Other's have the product in stock. This ask for full payment when the product is shipped.

Another thing I would like to know. Do you use Letters of Credit, and if so in what circumstances?

 

[getitstraight]

Other's have the product in stock. This ask for full payment when the product is shipped.

They ship goods to you in good faith without any payment? Is that international trade (I know its no big deal and common in national trade)?

 

[Mefi]

They ship goods to you in good faith without any payment? Is that international trade (I know its no big deal and common in national trade)?

No, I meant they want to recieve payement right before they ship the goods.

 

[patrickyao]

That depends.As a Chinese supplier,we vary on payment terms on our customers. For some loyal customers who we have been dealing with for many years, we will start the production just after receiving the order confirmation. The regular payment is 30% deposit and balance after faxing the documents copy. But for some new customers,we may aske 30% deposit and balance before shipment. For customers from Africa,we may ask for 50% deposit and balance before shipping.

 

[patrickyao]

LC is also an option

 

[Dattatray]

I will help you plz contact me..... A - 201, Mathwad Prangan, Shivathirth Nagar, Pune 411029 Tele- Fax :- 02025433487 020 2543 3487 Cell :- +91 9890618838

 

[renaissance group]

normal in stainless steel payment terms are payment against document or
open an Letter of credit

 

[Aftab Hadi]

Hi. Question for all those importing or exporting wholesale. What payment terms are the most common? Which terms do you prefer (but not always get or provide)?
Is there a difference in usual payment terms depending on location? Meaning that you would do one terms in EU-EU transaction, but different payment terms in EU-Asia transaction?
thanks

In international trade most common and safe is LC payment term.

 

[GraemeL]

In international trade most common and safe is LC payment term.

Yes but 6 years later bank transfers are much more common.

 

[Ecowritingtablet]

in china it is always 30% down payment to suppliers to start production, then 70% balance after goods finished.