For beginners. how to discuss with the factory about the payment

Here are the problems encountered by Brazilian merchants and Chinese factories in terms of payment. 

the sample, delivery date, packing, etc., all discussed with the factory and confirmed. But the final problem is the payment term; the factory requires us to pay in full before delivery, and we want to pay when we see the draft of the bill of lading. 

And the factory insists that we are cooperating for the first time and will not consider making a letter of credit for the time being. So what should we do in such a situation right now? 

As a person who has worked in a Chinese factory for many years, give his advice from the factory’s perspective. 

(1) We can inspect the factory before placing an order, and any condition can discuss with the factory. If the order qty is small, the first order can accept the factory’s payment method and pay before shipment. After that, both of us are familiar with it. We can discuss other payment methods. We can also arrange for our employees to visit the factory or arrange for a third-party agent to inspect.

(2) We can discuss with the factory whether it is acceptable to accept 10% or 30% advance payment + 7 days after the final amount or see the draft bill of lading, which is a prevalent method of payment in export trade, which should be acceptable to the factory.

(3) After placing an order to the factory, we should follow up on the order’s progress and require the factory to update the details of the order every week. All the requirements and attributes (color, packaging, etc.) are checked clearly with the factory to ensure quality and delivery time. we have to follow up the progress of the goods by sea or air after shipment also, send the original bill of lading to us in advance, and prepare for import customs clearance

For beginners, the method of payment is very important, and we must be very careful about it.