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what is commonly expected in terms of payment for a start up company In the garment manufacturer industry?
I am a start up bag company in the USA and I have just connected with my first factory in India.
What can I expect of them, how are they going to want me to pay and when? I am ordering 5000 bags. Thanks AP
Free Member, Joined :02/20/2008
No of Topics Posted : 2
Reply/Comments : 4
Most common practise is letter of credit,or part advance rest against documents.In case you decide to pay part advance its advisable to get credit report of the supplier you plan to work with
NEW DELHI MAIL ORDER SERVICES LTD.
New Delhi, India
Free Member, Joined :02/19/2002
No of Topics Posted : 1
Reply/Comments : 7
Thank you very much for your response.
Free Member, Joined :02/20/2008
No of Topics Posted : 2
Reply/Comments : 4
The manufacturer replied with 75% advance of order and prior to approval of sample and the balance of payment on their shipping of the faxed documents. I find these terms extremely tough what is your suggestion to respond?
Free Member, Joined :02/20/2008
No of Topics Posted : 2
Reply/Comments : 4
I think cost of sample can be paid in advance and maximum 50% advance can be given after sample is approved balance 50% should be against shipment.
NEW DELHI MAIL ORDER SERVICES LTD.
New Delhi, India
Free Member, Joined :02/19/2002
No of Topics Posted : 1
Reply/Comments : 7
I believe that is a good balance and paying for sampling upfront is a perfect suggestion .Thank you
Free Member, Joined :02/20/2008
No of Topics Posted : 2
Reply/Comments : 4
Normally the practice is 25% advance along with order and balance 75% at the time of dispatch upon receipt of fax document. some times 30/70 ratio is also there. Normally buyer prefer LC which 25% along with order and balance prior to dispatch in this Bank i involved and documents are routed through bank but buyer gets the security against his investment. It is considered the safest method of payment in International trade.
Free Member, Joined :10/04/2005
No of Topics Posted : 16
Reply/Comments : 54
Hi, this is a later coming reply.
I am a paper packaging manufacturer in China. Usually , we use L/C or T/T 70% before mass production and balance against B/L faxed for new customer. But for the order qty 5000 piece , we usually use T/T 100% before mass production as the payment terms because of the high bank fee. The payment terms we choose are according to the goods value and customer's credit.
Just for your ref.
Thanks!
Dingxiang Beicheng Flange Co., Ltd.
Kunshan, China
Free Member, Joined :06/06/2006
No of Topics Posted : 1
Reply/Comments : 3
I think , most of the buyers like to pay through Letter of credit. you can ask them for some advance payment and balance at the time of fax copy of b/l
Free Member, Joined :06/13/2007
No of Topics Posted : 12
Reply/Comments : 20
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