Safe Ways To Make Payments In China

See more at: http://www.runningwithchina.com/safe-ways-to-make-payments-in-china/ Join Running With China's FB Fans: http://www.fb.com/runningwithchina -------------------- SUMMARY: -------------------- Hi guys welcome back to Running with China quick tips for sourcing in China. Today’s topic is “Safe ways to make payments China”. So we've got this new project going, and a couple of suppliers off Alibaba, let’s say one guy got a call from them he’s ready to send a purchase order, they send back an invoice with company information. And the supplier says: “But if you send it to that sender account (which looks like a personal bank account) I’ll give a 5% discount off and he will make the order 5 days faster.” There is a couple of things you want to avoid in order to make a safe payment to China for your goods. First thing “Don't do western Union”, because it has no connection to anything, it's just pure cash. Another thing I wouldn't do is “Paypal” because Paypal again is not connected to a company account, now unless you setup a company, it's going to be a little hard for you to figure that out, so I would avoid that at all cost. I think the most secure way is a wire transfer from bank to bank. From bank to bank to a company account. And “why is it important to send money to a company account? So if it's a personal account, it has no connection to the purchase order so if something did go wrong you will have no way of getting your products fixed or getting that money back, because it's just a personal person that doesn't have any connection with the factory’s official people. So they can just say “Hey it was just for a gift, he just loaned me some money”, there is no traceability, there is no connection to anything. But if you send money from your company account to another company's account there is accountability there, you can claw back those funds if something goes wrong. If you send it to a personal account, that money is gone. It can be just a sales guy, we don't know or he might not even work for the company, or he might just be an agent or something. Another thing to check in “How do you know the name of a company bank account? What are the documents you need to prove that? On the purchase order you have your banking information and on the banking information should be the company name. Now the company name should match their business license. So when we are making a purchase from a Chinese supplier for the first time always request a copy of a valid business license. I can’t tell you how many times people show me a business license and it expired three years ago, so it doesn't mean anything. We make sure it’s a valid business license, that company name matches the name on that account, matches the name on the business license and that it’s valid. That’s right, so this is the most safest way and if somebody is doing real business this should be easy to get you, right away. That’s another thing, if they can’t, if they start making excuse like “my business license is in the shop, it's getting fixed” that’s a big time RED FLAG. By Chinese law every company needs to display their valid business license at all times. So if there is any excuse to why it's not there... RED FLAG, find somebody else. - See more at: http://www.runningwithchina.com/safe-ways-to-make-payments-in-china/ -------------------- ABOUT RUNNING WITH CHINA -------------------- We are Jamon, Matt, and Terry (JMT), three Americans that have been living in China for a collective 30 years. On the ground managing offices for some of the world’s largest brands and retailers, we have visited 300+ factories in over 15 provinces across a wide range of product categories. There isn’t a problem in China that we have not encountered. Along the way, there have been some incredible successes, as well as some spectacular disasters. It’s been a wild ride! We believe in equipping people interested in this market to avoid pitfalls, abuse, and unsound decision making … the first time. Our goal is to enable and educate you on how to proceed into the Chinese manufacturing world, how ecommerce and retail business can make you some serious money, and how to navigate the information landmine that is sourcing in China. See more at: http://www.runningwithchina.com -------------------- SUBSCRIBE ON YOUTUBE -------------------- Never miss a video! Subscribe now - https://www.youtube.com/user/runningwithchina