Methods of Payment in China

The importer, ie the buyer, needs to ensure that he receives his goods on time and to his requirements; the supplier wants to make sure he receives payment on time. Each party wishes to know that the other is reliable. Some suppliers will only supply goods if they receive part payment with the order and the remaining payment when the goods are ready for dispatch. This particularly applies to very small businesses in the craft and design field but many other firms will refuse to give credit to a buyer on a initial order. In any case, the supplier will wish to check the buyer’s credit worthiness before granting credit. The Importer will wish to check that he is dealing with a reliable and trustworthy supplier before placing orders. The importer and the supplier need to build a good relationship if both parties are to benefit from the business.
The Importer should always be on the alert for a supplier running into production or financial difficulties. This could be indicated by slow deliveries, a deterioration in quality or by a change in normal business relations.

In developed countries there are many organizations that will, for a fee, provide a credit rating and other financial information on a company. Dun & Bradstreet are one of the best know multinational companies in this field. They offer business information and other services. CCN Group is another UK firm who supply similar information and can be contacted direct or accessed via the Europe Network Ltd database. Another company providing such information is Graydon UK Ltd, Who covers companies in over 160 countries. Your clearing bank can also often provide a status report on a possible supplier. This is known as a bank reference and gives information on the creditability of a possible supplier. Should you wish to investigate the banks credit assessment services in more detail you will find most of these organizations with stands at the Credit Management Exhibition, usually held in April in London.