Questions on Exporting and Transactions!!!

[P.T.C]

I have been wholesaling agricultural products for a couple of years but I have done it inside the borders of my country, now i am interested to export agricultural products outside my country.

I recently found a Customer from Ukraine, I am willing to sell him apples and other fruits and he has agreed on this.

How can I be sure he will pay me when I load the trucks where only one truck will carry 20 - 25 tons of fruits which cost from 6000 - 10 000 Euros???

I can't afford going with the trucks with each tour to Ukraine, it is a waste of time, energy and money and i can't do that.

How do I know he is gonna pay me once he receives the loaded Trucks ?

isn't there some kind of agreement done so we can both be sure the business will go fine and so it can be a win - win situation ???

Contracts and stuff like that I don't think will work well cuz in case he doesn't pay me I have to chase him to Ukraine and waste a bunch of money which is not worth it.

Someone told me Letters of Credit were a good idea where his Bank will make sure u get paid if he doesn't pay your goods.

Any suggestions please!!!!!!!!!!!

 

[SyamKolli]

Letter of Credit OR Cash Against Documents, are the safest way to complete transactions.

I suggest you meet with your bank manager to discuss

 

[BLintl.]

We can help both you and the buyer. We are handling similar situations every day. Just call us or PM.

 

[andrewt67]

Irrevocable Letter of Credit or Cash Against Documents are pretty secure ways to do international business.

Cash Against Proforma before shipment is even more secure - that's if you can get your buyer to agree to this

 

[BLintl.]

It can be difficult to arrange a L/C for 6000 Euros from Ukraine. This market is a "cash" market. If you ask for prepayment the buyer must be sure that you will not disappear with the money and will not send him sub quality product.

 

[kalligraf]

Letter of Credit is very difficult for Ukraine, coz they need to prepare a lot of documents. Its difficult... but real.
Also sometimes with new costumers we doing like this: Placing goods into their truck, take customs clearance and sending to our buyer documents about customs clearance. They paying according to this documents and we lets truck going. I don't know about your country, but in our country we have 2 free days to let truck going.

P.S. Could you send me what type of fruits you are trading with and your best price for this? U can in PM.
And if you want, I can try to cheek this company in Russian speaking Internet.

 

[BLintl.]

OK, you clear the cargo, send the invoice to the buyer but for any reason he refuses to pay (found cheaper product other place, short of cash etc). What will you do with a truck of fruits that has been cleared for export?

 

[kalligraf]

OK, you clear the cargo, send the invoice to the buyer but for any reason he refuses to pay (found cheaper product other place, short of cash etc). What will you do with a truck of fruits that has been cleared for export?

If like this he safe the money and back goods at warehouse. Anyway stay with fruits is better then stay without goods and without money. The main is not send goods without payment in the rush. BLint already know my trouble. In rush i was send goods for more then 20k$. Or you can try BLint's service. I don't know how do they work, but you can cheek and tell to us.