Paying a chinese supplier by T/T rather than Bank transfer

[Pandybearse]

Hi, we have been asked by a new supplier in China to pay by T/T rather than bank transfer "to avoid bank charges". As usual I smell a rat - any comments will be much appreciated

 

[TODonnell]

My 2 pence: If it feels dodgy, it probably is. Go with your gut.

 

[Clement]

As a standard manufacturer&supllier,T/T is convenient,normally the beneficiary is the owner,it will help him "avoid pay extra money to the government - tax",and it's very convenient to withdraw money.Factory need "fast money" to fuel it to make it running health.
In a word,T/T is simple and easy.

 

[MOIC]

Hi, we have been asked by a new supplier in China to pay by T/T rather than bank transfer "to avoid bank charges". As usual I smell a rat - any comments will be much appreciated

How well do you know the factory?

Have you bought from them before?

How authentic is the paperwork, and is their business licence numbers clear on the invoice?

Is the account name EXACTLY as the invoice header?

Due diligence is the order of the day!

If in doubt, get the factory checked out.

Don't take any chances.

Ron
MYOFFICEINCHINA

 

[DannyApps]

A telephonic transfer is pretty typical in cross border trade of value of over $1000. I do it, Intel does it, Microsoft does it, loads of people do it.

In the UK you'll find that it's refereed to as a CHAP, WIRE - it often is much more cost effective.

The sender pays a fee (most banks charge about £20) and then the monies are sent and it's pretty quick for monies to be received - much quicker than by cheque for example. The sender, will receive monies in their currency (assuming they have an account that allows conversion) and may also pay a fixed fee.

Often this is the cheapest way of making payment, it's legal, above board and very common. However, it's not the best way in which to protect your money from a "dodgy supplier" consider paying 50% up front and 50% on delivery to minimize risk, or using Paypal or similar.

Regarding taxes, this has little to do with telephonic transfers. You'll need to ensure that your taxes that you need to pay are paid, often Chinese firms try "by default" to help you avoid tax with good values/gift laws etc.

You'll have import taxes to pay. If it's the first time your paying a factory, start with a small order before you go bigger to build trust.

 

[IMEX Sourcing Services]

TT is very much the standard used in International transaction, so nothing too dodgy about it. However, you need to carry out basic due diligence, as with all payments and ensure that the company name on the invoice matches the account holders name. Do not pay to individual accounts. We have seen a lot of cases, where a company will invoice us and at the bottom of the invoice, there would be bank information for an individual's accont..If you see a scenario like this, refuse to pay to the individual account and ask them for a company bank account info.

 

[zoe_es]

Please check this supplier is a real company from website on google. Beware of the fake factory!

Good luck!

Zoe
--
A Plus Sourcing China office
Customized Sourcing Solution Provider

 

[foreverpump]

Payment terms is based on trust. TT is ok, Even DP is allowed in the long term cooperation. But make sure you find the right one, and Most time do business with company is the same with individual, only to get what you paied and worth it.
But all in all, this based on business trust.
As a supplier, I advise you start with small orders. Maybe cost more, but will safe.

 

[greenwisehandbags]

T.T is most convieniently way for factory/manufacturer to receive money for small orders and shipment.If you trust your supplier,then go ahead,if you have little bit of doubt just verify again before pay ! you are the one biz with them and you should know the whole of it.Just keep in mind,doing things step by step,try first before build trust!