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Can I purchase goods on credit from China suppliers?

Posted: 2013-03-18

Full Question

Can I purchase goods on credit, and then after I finish selling them, pay the supplier? Can a person buy on credit if he does not have money but seriously needs the goods?

Answer

The answer really depends on your relationship with your supplier. Since most factory-direct orders to China are above 10,000 USD per shipment, and assuming you are under that threshold, then unfortunately, I am sorry to tell you, from my experience, it is very rare to buy on credit from a factory. However, if you start small and pay on time, it is realistic to think that you can move to preferential terms on future orders. If you are buying from a China wholesaler rather than factory direct, you may be able to get credit sooner if your order is large in the eyes of the wholesaler (even if small in the eye of the factory).

I do know of buyers who have credit terms with factories, but they are all large buyers who have established long-term relationships with their suppliers.

Here are is a link to articles on the subject of supplier payments/ negotiations for your reference:

http://www.smartchinasourcing.com/home/paying-suppliers.html

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