It depends on whether they have a company bank account. Some companies use their own personal account for business. I know it should not be done, but its generally done to save on the costs associated with running a business account.
Even alot of the bigger chinese factories that I deal with have the account in the name of the owner of the factory or chairman of the board this is certainly not uncommon in china however I would still advise caution unless you know who you are dealing with.
If they are an established vendor then surley they can provide you with some trade referances like existing customers elsewhere in the world? I would be surpised if you where there only export customer, and if that turns out to be the case I would back off and see what options you have to first verify they are legit.
Another way to tell how 'international' the vendors customer base is where they have bank accounts, most firms that have a large overseas customer base will have accounts in Hong Kong as it is easier for their foreign customers to remitt payment than with Chinese banks.
Not everyone in China is a scam but there are those that will happily swindle people so just as in every day life proceed with caution.
it may well be common but everytime I've got close to doing a deal and the old personal account has come out I have made it clear that I am doing business with the registered company and not the owner. There has never been a time yet when they haven't quickly furnished me with the details of the company account when the deal was going to fall through.
I've had quotes from several Chinese suppliers. The ones I kind of trust the most (eventhough I haven't verified them yet but have a gut feeling through exchanging emails-they are more professonal than others) usually quote "term of payment" TT. Do you think they will usually agree to accept L/C if I ask?
The chances of them accepting an L/C are very slim. It's too much hassle for a small order. Spend $30,000 US and then talk about L/C's, until then do your homework and bite the bullet.
__________________ Didley Squat now in stock. Going to be a FAST mover!
it is about several thousand dollars. They usually ask for 30% deposit before production and 70% before shipping. How do I know they will not take 30% of deposit in advance? How large of an order will you usually use L/C for?
Question about t/t to china
Linear Mode
December 2008
