State.Of.Flux
New Contributor
Hi all,
Long time lurker, first time poster. Firstly, I'm really grateful for all the advice and information that I have read here.
There are some super successful entrepreneurs and a bunch of like minded people here that I've rarely encountered before. Kudos!
A little background about me. I've imported containers, mainly from China in the past of varying products and materials. There's been some speed bumps and pot holes but the learning experience has been phenomenal.
I've found a new factory that has slightly different payment terms that I haven't encountered before and I was hoping on some guidance to navigate this.
My usual suppliers payment terms are completed in 2 parts:
a) 30% deposit to commence manufacturing
b) 70% balance upon loading the container
The new factory that I have found wants:
a) 30% deposit to commence manufacturing
b) 50% payment once items are completed
c) 20% payment on the B/L
Without sounding naive to the supplier (China is the wild, wild west) how do I navigate this.
I'm happy with the payment terms as it staggers the payments out. How does this work?
I usually negotiate FOB pricing and then when the goods are ready, I compare the suppliers shipping fee with a couple of other shipping agents (China based). For some reason, going with the suppliers shipping option in the past has been cheaper as the agents tend to stack on a lot of other fees (container transport, local charges etc) even though I have advised them of the FOB arrangement with the supplier.
Thoughts and guidance are appreciated. Thanks in advance
Long time lurker, first time poster. Firstly, I'm really grateful for all the advice and information that I have read here.
There are some super successful entrepreneurs and a bunch of like minded people here that I've rarely encountered before. Kudos!
A little background about me. I've imported containers, mainly from China in the past of varying products and materials. There's been some speed bumps and pot holes but the learning experience has been phenomenal.
I've found a new factory that has slightly different payment terms that I haven't encountered before and I was hoping on some guidance to navigate this.
My usual suppliers payment terms are completed in 2 parts:
a) 30% deposit to commence manufacturing
b) 70% balance upon loading the container
The new factory that I have found wants:
a) 30% deposit to commence manufacturing
b) 50% payment once items are completed
c) 20% payment on the B/L
Without sounding naive to the supplier (China is the wild, wild west) how do I navigate this.
I'm happy with the payment terms as it staggers the payments out. How does this work?
I usually negotiate FOB pricing and then when the goods are ready, I compare the suppliers shipping fee with a couple of other shipping agents (China based). For some reason, going with the suppliers shipping option in the past has been cheaper as the agents tend to stack on a lot of other fees (container transport, local charges etc) even though I have advised them of the FOB arrangement with the supplier.
Thoughts and guidance are appreciated. Thanks in advance
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