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What payment methods and terms should I use to pay a supplier?

Posted: 2015-02-25

Full Question

What methods of payment do Chinese suppliers prefer?

Answer

I would say that Chinese suppliers prefer 100% in advance via bank transfer (or better yet- cash) and they would be very happy if you don’t bother to use a contract or PO.


Some buyers are crazy enough to do business that way and if something goes wrong, they have no leverage.


I assume the question is really about what methods will Chinese suppliers accept, rather than what do they prefer.If you are looking for payment methods that are fair to both the buyer and the seller, you may be interested in these links:


Negotiation, Contracts and Payments – The Ultimate Guide

Safe Payments = Safe Sourcing

How to lower my exposure to risk when sourcing?


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