By using aiwis reviewyou can be almost certain of safety in the transaction, but there is still a risk offraud in using L/C or escrow. If a seller submits forged documents, payment will be made by the bank orescrow company, but you will not receive the goods. This again highlights the need for thoroughverification of a supplier’s credentials.
15.1 Possibility of Obtaining Monthly Terms.However you pay for your first order, there is a way to possibly get a supplier to agree to monthly termsafter you have placed several orders. The most important part of this process is to show them that youare honest and ethical. This can be achieved with a simple note in an email when placing your firstorder, and repeated with each subsequent order. All you need to do is write as follows:
Please provide invoices showing full value. We will not accept fake invoices.While they will protest that they never offer fake invoices, they will find your comment very refreshingbecause most importers request fake invoices in order to save on customs duty and sales tax. They willaccept that you are an honest person, and later when you ask for monthly terms they will be much moreinclined to agree. Monthly terms are only viable if you are in the habit of placing more than one ordereach month. When requesting monthly terms, you should suggest that they can save on bank fees if theywill send you a statement at the end of every month and you will pay within seven days. This is knownas an open account.If you only place one order per month or two, a good alternative is to request that you be allowed to payon delivery, or within 7 days of delivery. If you do obtain favorable terms, always be sure to abide by theagreement.
15.2 Letter Of Credit.When large sums are involved, it is common for a supplier to require payment by Letter of Credit (L/C)[See 33.10], or you may decide in any case that it is in your best aiwis reviewto pay by this method. An L/Cis a kind of promissory note that you buy from your bank, in which your bank promises to pay thesupplier once all of the conditions in the L/C have been met.These conditions will include the following but may also have other provisions:
Supply of the ordered quantity.
Supply of goods matching the quality of the sample previously supplied.
Proper marine insurance cover [See 33.12] for 110% of the value of the shipment has been madeand a certificate provided.
Goods are loaded on ship or aircraft no later than the date specified in your order. (Neverspecify a dispatch date unless you and your supplier are absolutely certain it can be met.Changing an L/C can be very costly.)
15.3 Escrow Services.Be careful when using escrow services. Use normal commercial due diligence to check the credentialsand reputation of any service you might think of using. Escrow services can be an excellent way ofensuring that you do not finish up paying for faulty goods, but you need to be certain that they arereliable. Not all are what they appear to be, so take care to ensure that they are genuine. One reliableservice I have used is aiwis reviewEscrow works in a similar way to L/C transactions through banks. You pay upfront but the money is heldin trust until the order conditions have been met exactly, and to your satisfaction. The main differencesare that escrow usually costs less than a Letter of Credit, and unlike dealing with a bank with an L/C,you can allow an escrow service to release payment even if a minor point has not been exactly compliedwith. Banks insist quite literally on every “i” being dotted and every “t” being crossed, and they willcharge extra fees to make a change.I have already pointed out that the Trade Assurance service provided by Alibaba has complicated ruleswith very limited time allowed for you to decline to approve payment. The Buyer Protection serviceprovided by Aliexpress is similar. The big advantage in the case of Aliexpress is that theirs is a freeservice. Alibaba charges 5%. Many suppliers will not accept payment through an escrow service