What % to pay with first order

[TeeBee]

Hi,

I'm just about to order goods from an Indian supplier for the first time. Can someone let me know if it is normal to make the whole payment at the time of the order, or pay a percentage (say 30%?) with the order and then pay the remainder just before delivery?

Thanks

Tony

 

[GraemeL]

How much money is involved Tony?

G

 

[TeeBee]

Hi Graeme

My first order with this supplier will be around £1800

Thanks

Tony

 

[MOIC]

It really depends whether the items are in stock and ready to be shipped, or if the supplier has to produce your order after receiving your deposit/payment.

If it is a stock item and ready to be shipped, as long as you have checked the shipment, then its no problem paying in one go, presuming you have done your due dilligence on the supplier and sending the payment to his company bank account on the headed invoice.

If t has to be produced from scratch, it is better to pay a deposit first and balance before shipment, once you have checked the goods are correct.

If you are asking for any amendments or personal logos, then this may alter the payment method.

 

[GraemeL]

Generally I agree with Ron, but would add a slightly different perspective.

£1800 is 'worth' a lot more to an Indian company that to a UK company. They would see their risk as being higher than yours. Do they trust you? Why should they accept anything other than 100% with order? You can go a long way to allay their worries by paying 100% with order.

£1800 is not a big order nor a lot of money. Its best (in my opinion) to be very helpful on relatively small amounts like this to build up the confidence of your supplier. Much harder to do this with large amounts. When larger amounts are involved, if you have built up trust early then you are then much more likely to get better terms from them.

G

 

[MOIC]

If you decide to pay 100% with the order, make sure you have approved the sample first and can rely on the supplier to fulfill their part of the contract.

 

[TeeBee]

Thanks guys.

I received some samples last week and they are the quality I am looking for so am about to order more of the same. I have no way of checking the order I'm about to place is the same standard before the supplier ships it - unless there are companies in India that offer this service?

Thanks

Tony

 

[terryman0574]

In china,20-30%deposit first,the balance should be against the B/L copy.