China Sourcing: Making Safe Payments and Expectations about Credit
I’m honored to serve as the primary content curator for Global Sources’ knowledge center. I also volunteer to lead the China Sourcing “ask the experts” help desk for Global Sources.
Here is how we answered a question about importing motorcycle part from China, but the answer is applicable to a wide range of products, so I decided to blog about the Q&A.
I need motorcycle spare parts on credit. Currently, I am selling oil for motorcycles and now my customers are asking for spare parts. Can l get stock on credit, then pay as l sell?
Mike’s Reply:
Here are two blog posts that give some insight into how suppliers view payment terms & credit: https://www.asiabridgelaw.com/2017/05/china-sourcing-reasonable-payment-terms/ and https://www.smartchinasourcing.com/paying-chinese-suppliers/
In short, if you are a big buyer spending big money, then you can extract preferential payment terms. If you are ordering less than 10,000 USD each time, and a seller offers you net terms (pay after delivery), be very careful as it could be a scam!
ABL Blog: Sr. Editor and Primary Content Creator: Michael J. Bellamy
Originally from Upstate New York, Mike moved to Asia in 1993 and is a China business advisor to both Fortune 500 companies and small businesses. Recognized as an expert on doing business in China, he has been interviewed by WSJ, CNBC, FT & Bloomberg.
A featured presenter on China issues at seminars, trade shows and corporate events across the globe.
Learn more about Mike and AsiaBridge Law at
https://www.asiabridgelaw.com/business-advisory-services/
Mike is the author of “The Essential Reference Guide to China Sourcing”
(available on Amazon).