View Full Version : How do I pay my Supplier? lol. In China from the USA.

07-22-2005, 12:15 AM
Yeh I'm soo new to this and I been talking to this manufacturer in china on some textiles I'd like to make... Only problem is I've no clue how to make payment to them.

They're used to using COD by freights but my order is soo small that its not a good idea to use frieghts and I can't afford to anyways. So then the problem arose... how can I pay them? lol

Anyone know how? PLease let me know! I'm soo new to this.

07-24-2005, 09:15 PM
It depends on the size of the order. I buy a lot from China...mainly electronic components and most Chinese suppliers in that industry agree to Net 1 terms . You wire the money 1 day after you receive the good. If it a small order this could usually work.

But they would need to get some trade references form other business you have credit with...not always though.

Also, you can look at escrow...in the electronic components business the are a number of companies that provide the service for a fee of course. You wire the money to the escrow company ( usually US/Canadian based) they hold the money and inform your supplier to ship the goods. Once you receive the goods and they are okay, they wire the money to the supplier.

Check within your industry if that option is available.

One this you should NEVER do is Wire the money in advance...especially to China.

I hope it helps.


07-24-2005, 10:40 PM
Ahh thanks... i was actually even considering wiring the money in advance. lol. But good warning.

I heard something before about Letters of Credit and something else with the abbr TT which I don't know of. Any idea what TT is? And also can any bank make a Letter of Credit? And if so do they usually charge you? I actually wanted to import some textile products.

08-25-2005, 02:08 AM
I am little angry at such so warning. :oops: In fact, most of China suppliers are honest. There is bad egg in vevery contry, isn't there? I am a Chinese girl. According to my experience, you can 30% T/T in advance, balance payment against the receipt of B/L. In China, many company dislike L/C because its charge fee is very high. Only when both couldn't find the best way, they choose L/C for business. Hope help you.

11-27-2005, 06:55 PM
I am an exporter of woolen textile from China. Usually we use TT prepaid, especially for small amount, the bank charge is much less then L/C, and it's easy for both the exporter and importer to handle it.

02-19-2006, 05:44 AM
As you say, its small order.

You can ask the factory's boss's bank account. of course private account.
Then you send your money from your bank(if you donot know how to do, call your bank manager) to the account.

My client sent money to my private account about 10000USD. No problem. Of course bank will charge you about 25~50 USD for the remittance.

Then you send a fax of your bank remittance to the factory and ask them to send goods. They must send goods if you have signed contact before money. *_*

In other case, if its big money more than 10000USD.
You can pay 10% as a deposite by T/T. You must send the money to company account not private account. Factory will also ask you to send to their company account. Why? *_* its secret.

The if goods is ok, factory will tell you about this and ask you to pay the rest money before shipment.

You can ask your agent at China to inspect the goods, if goods ok and meet your requirements, send the rest money and make shipment.

Of course you can make payment 30-30-40/30-70/10-90/50-50. It depends on your contract with the factory.

But never cheat a China factory. Because many workers need your money to make a simple living. They do a lot for others and earn very little. I admire Chinese workers.

02-19-2006, 05:46 AM
If the money is not more than 100000USD. Donot do L/C. Because bank charge is very high. You can ask your bank about L/C charge.

01-16-2014, 05:14 PM
Unfortunately the first times you can only proceed with pre-payment via T/, this mainly means you need to ask for some help from your bank. After a couple years, when they get to trust you and you are an interesting partner for them, they will accept also 30 days payment, but it takes a while to get the new payment form.

01-29-2014, 04:12 AM
If you need to pay in advance then the best option is paypal, because i think you know that you can get your money back within 90 days in case if you will not get your products.

01-30-2014, 02:03 AM
the best option is paypal , but not every factory will accept that.
30% TT, and pay the rest before it shipped out.

01-30-2014, 02:34 AM
I would not pay in advance when dealing with them the first time. If this is what they want, ask to use an escrow service, you can even offer to pay for the fees.
If they become a more long term business partner then I don't see it as a problem, but for a first timer I'd recommend something else.

Also Paypal is ok but I'm not too sure how well their system works for proving that you didn't receive anything.

Its-China Group
02-03-2014, 05:27 AM
Best way to work with China www.its-china-group.com We can help to buy any kind of goods in China and make delivery

02-03-2014, 07:17 AM
Paypal could be of some help if the company accepts paypal payments. Cash on Delivery could still work if the manufacturer or seller agrees to. Credit card, Master Card and other Cards which are accepted are also a good choice. Bank and Wire transfer is another choice.

02-03-2014, 11:57 AM
I personally would never do business with China. The reason their products are so cheap is because they have people sweatshops making them, a lot of times kids. It also takes jobs away from Americans when you by Chinese products, I think it's un-American to buy from them. I guess if you still want to you can use your VISA/Mastercard or PayPal. Make sure you never use cashiers checks or cash on delivery, there are a lot of international scams.

02-05-2014, 05:23 AM
Chinese suppliers would never rip you off. Thing is most chinese companies are huge companies and they don't cheat. It's best not to work with a small company from the very outset. Alibaba thousands of gold suppliers with extensive past performance. Best to source from there.

Chinese companies accept a wide range of payment methods ranging from Western Union, Wire Transfers to Letter of Credits.

If it's a small order a wire transfer is sufficient. CAD (Cash Against Documents) is how you do it. If it's a large order you're placing, open a Letter of Credit and discuss the incoterms with your supplier.

You can also include an inspection by SGS for quality and quantity in the Letter's of Credits incoterms which ensures that you get what you're paying for.

02-05-2014, 06:05 AM
If you need to pay in advance then the best option is paypal, because i think you know that you can get your money back within 90 days in case if you will not get your products.

Yes, I agree the best option is paypal. I am also importing shoes from China and am currently using paypal. I think it's the safest and fastest option. But the problem is that it depends on your factory. I had to look around for a month to find the right people to work with!

02-05-2014, 10:18 PM
I normally use Paypal, but I have heard some factories that don't accept Paypal, and use Alipay, or accept bank transfers. Many approve of wire transfers such as Western Union, though that can be risky as well. Although there is the escrow option, it doesn't really work when the orders take so long to arrive, and by that time, the number of days you have to get refunded is probably close to none. In my experience, it's a good back up, but don't rely on it.

02-05-2014, 11:53 PM
That sounds like a good compromise. They are going to have to be flexible if they expect to keep your business. Hopefully they do accept Paypal.

02-25-2014, 08:55 AM
To be totally honest there are loyal suppliers from China however there are also many scams as well. I normally don't just buy from China without building a relationship with the supplier and narrowing down the possibilities of a bad business transaction. I would prefer to pay with Paypal or Escrow as these two are more secure methods of payments. Chinese like to keep long friendships and if you come across a genuine business then you should hold on to that contact because in the long run they will provide you with more than enough than you bargained for.

02-25-2014, 08:59 AM
I actually disagree with you because the Chinese products are cheap, not just because they can afford to sell it cheap but because some of the big companies in America and even around the world rip off customers with their high prices while the Chinese makes it more affordable to own the same product but just not with the same brand. What about those that are not capable of owning high end devices, the Chinese caters for them, so it's all about the target market.