Overseas Trading
Discussion
OK I am just starting off on my little business adventure and have received enquiries from a client in Singapore. Now this could either make or break me straight away.
If I invoice this company, but then they decide to not pay me, where would I stand? How do I get the money from a company in Singapore in a hurry if they go past my invoice deadline?
The reason it could break me is that I am going to have a hefty outlay on this contract and if they decide to not pay me then I will be in deep s
t with suppliers and possibly the bank.
Am I just being paranoid that everyone is a tt and wants to rob you?
ETA: any advice welcome.
If I invoice this company, but then they decide to not pay me, where would I stand? How do I get the money from a company in Singapore in a hurry if they go past my invoice deadline?
The reason it could break me is that I am going to have a hefty outlay on this contract and if they decide to not pay me then I will be in deep s
t with suppliers and possibly the bank.Am I just being paranoid that everyone is a t
t and wants to rob you?ETA: any advice welcome.
Edited by WorAl on Thursday 4th February 11:45
christmc said:
What are you selling and what are the values of what you are selling?
Its equipment to the oil/gas industry, its not large amounts of money, but its enough to put me in deep do do.hidetheelephants said:
Get some of the money upfront? Ask for it to be put in escrow? Do they realise how new/small you are, or are you attempting to snow them? Speak to the export credit guarantee folk ECGD
What is Escrow again, heard of it but not entirely sure of what it is?They know I am new and small right now and the enquiry they have sent is nothing for them, a lot for me though. I may just be being paranoid.
Will be securing a deposit from them, so this will help.
Escrow
Reading that you're making a physical object, ask for stage payment; one third as a deposit, One third at some clear way point in manufacture, say assembly and testing, and then the final third when it's on the pallet ready to ship.
What are you making? A better mousetrap, or is it something secret squirrel so you could tell me but would then have to kill me?
Reading that you're making a physical object, ask for stage payment; one third as a deposit, One third at some clear way point in manufacture, say assembly and testing, and then the final third when it's on the pallet ready to ship.
Edited by hidetheelephants on Thursday 4th February 12:34
What are you making? A better mousetrap, or is it something secret squirrel so you could tell me but would then have to kill me?
Edited by hidetheelephants on Thursday 4th February 12:42
Iv got to be honest, as a first time deal, i would ask for all my cost upfront and then just ask for the profit on completion or delivery.
Not sure what profit margins you are operating on,but this is the most secure way until a tradin rerlationship is
I have just agreed a deal for some work on a yacht in Italy roughly 35k and i am insisting on 50% upfront before i will even consider ordering stock.
Any company no matter what size will always expect to pay on a pro forma on the first trade, so they should expect it
Not sure what profit margins you are operating on,but this is the most secure way until a tradin rerlationship is
I have just agreed a deal for some work on a yacht in Italy roughly 35k and i am insisting on 50% upfront before i will even consider ordering stock.
Any company no matter what size will always expect to pay on a pro forma on the first trade, so they should expect it
What you need is the purchaser to use an irrevocable letter of credit.
If they agree you dont get any monies upfront until either the goods are shipped or arrive at customs in the destination country, these term can be mutually agreed and put into the LC.
If using a irrevocable letter of credit make sure that prior to shipping any goods you get the LC confirmed by your bank, your bank will charge for this service but will make sure your LC is good.
Dont work with any other forms of LC only irrevocable with mutually agreed terms.
This way your client does not part with any cash upfront directly to you and your safe guarded against them trying to screw you over.
:-)
If they agree you dont get any monies upfront until either the goods are shipped or arrive at customs in the destination country, these term can be mutually agreed and put into the LC.
If using a irrevocable letter of credit make sure that prior to shipping any goods you get the LC confirmed by your bank, your bank will charge for this service but will make sure your LC is good.
Dont work with any other forms of LC only irrevocable with mutually agreed terms.
This way your client does not part with any cash upfront directly to you and your safe guarded against them trying to screw you over.
:-)
Mate be very very careful.
I was approached by someone and it seemed to good to be true. He said he was a business from Singapore - what normally is the case is these are scammers from Indonesia.
He wouldn't give me his exact address just a forwarding address.
Do your homework here and tbh i'm betting that it is a scammer from Indonesia.
I was approached by someone and it seemed to good to be true. He said he was a business from Singapore - what normally is the case is these are scammers from Indonesia.
He wouldn't give me his exact address just a forwarding address.
Do your homework here and tbh i'm betting that it is a scammer from Indonesia.
CHIEF said:
Mate be very very careful.
I was approached by someone and it seemed to good to be true. He said he was a business from Singapore - what normally is the case is these are scammers from Indonesia.
He wouldn't give me his exact address just a forwarding address.
Do your homework here and tbh i'm betting that it is a scammer from Indonesia.
That side of things is ok, thank you for the concern though. I contacted him and I used to deal with them at my old company so know they are ok, just concerned they miss the payment deadline and I'm lumbered with a £15k bill which I can't cover.I was approached by someone and it seemed to good to be true. He said he was a business from Singapore - what normally is the case is these are scammers from Indonesia.
He wouldn't give me his exact address just a forwarding address.
Do your homework here and tbh i'm betting that it is a scammer from Indonesia.
No probs mate.
The company i work for sell worldwide and tbh we adobt a policy of 50% up front and 50% prior to shipment. If we had not adopted this policy we probably wouldn't be here now. Maybe we are being over cautious but we've been in business since 1965 and this policy has served us well.
The company i work for sell worldwide and tbh we adobt a policy of 50% up front and 50% prior to shipment. If we had not adopted this policy we probably wouldn't be here now. Maybe we are being over cautious but we've been in business since 1965 and this policy has served us well.
Edited by CHIEF on Thursday 4th February 13:51
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