We sometimes get this question from clients who don't have a long experience of working with Chinese suppliers: We have been customers for a long time but they still refuse to give us credit. Is that typical/normal? And the short answer is, yes, it's typical unless you are a large and well-known company. Unfortunately, it isn't common for Chinese suppliers to give credit. Many long-time customers still pay 100% of their orders before they are shipped. And that's part of the "hidden … [Read more...]
Tough negotiations of payment terms with Chinese suppliers
Many purchasers are unfamiliar with what is commonly negotiated by other buyers in China, and this is especially true when it comes to payment terms. Some suppliers take advantage of it by requesting terms that are very favorable to their side. And it often leads to a typical "Chinese insane situation" where the buyer needs to guess what is going on in the supplier's head. Here are five questions that you should ask yourself in this case. Question 1: have I understood their … [Read more...]