TO SECURE YOUR PREPAYMENT
you pay in advance make sure that you will receive your money
back if the goods are not shipped.
you need to make an advance payment to a new supplier, it is
always sensible to secure the return of the money in case the
goods are not shipped. Below you will find some recommendations of
how to protect yourself.
transferring the money, ask your supplier to arrange a "pre-payment
return guarantee" from his bank. If the seller does not
perform, his bank will be responsible for the return of your money.
We have already described this method in our previous publication.
You can download the sample text of
the guarantee here: Pre-payment
the supplier to provide you with some references FROM YOUR INDUSTRY.
When you receive the names, do not call the phone numbers
provided but find the official website of the referred company and
call the main number. Compare the given details with those
officially published on the site. Write to the general mailbox of
the company with the local Chamber of Commerce.
the company on the internet. If your supplier has been in business
for a certain time, you will be able to find some information about
the company and its activities.
your potential supplier using our "company
services. You will have to pay a certain fee for this kind of check,
but you will obtain the most reliable information about the
you have discovered that you are not talking to a phony
firm and that the company exists, you can sign a contract. Make sure
that you have a clause in the contract that, in case the goods are
not supplied, the supplier will return the received payment within
5-10 working days after the latest shipping date. You should enclose
the penalty clause and make it clear that in case the money is not
repaid, the supplier will bear all collection, legal and other
possible costs plus accumulate bank interest for the period he keeps
try to avoid pre-payment to the unknown suppliers. If you can't,
try to pre-pay as little as possible, in some cases 10-15% can be
can pre-pay a certain amount and open a L/C for the remaining sum.
The best option will be that the seller will be paid after
you receive the cargo and control its condition. This will give
you some insurance that the papers will be issued properly and
you obtain exactly the contracted goods.
a local inspection and audit company to check your products during
the manufacturing process. The inspector should send you the reports
about the situation with your order. This type of service generally
is not expensive and will show your supplier that you control the
the goods are not supplied in time, start the recovering process
immediately and do not wait until the seller goes bankrupt or
disappears. In both cases your chances to claim the money back
are very small.
BL International Limited provides anti-fraud consulting services for companies involved in international trade. BL International offers a comprehensive anti-fraud protection program for exporters and importers that will help the companies to avoid fraud when dealing with overseas counter parties.
Please visit our website www.black-lists.com for more information.