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Important Factors in Business with China Suppliers
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Nina Lee
Nina is a consultant for Tootoo, the leading B2B Portal and Vertical Search Engine for China sourcing.  
By Nina Lee
Published on 09/13/2007
 
Mode of payment is an important aspect of any business, including business with China suppliers. The much preferred mode of payment is FOB i.e. Free on Board.Another most important aspect in business with China suppliers is to ascertain terms related to quality control.

Important Factors in Business with China Suppliers

There are several important factors that lead to success in business with China suppliers. Money, the driving force, is a key factor and cannot be ignored. Finance is the backbone of business and without enough of it there is no point of continuing. By following a consistent mode of payment to China suppliers you can make easy growth in your business. For that you are required to resolve all issues related to the terms of payment beforehand.


-FOB Mode of Payment:
You can resort to this typical mode of payment, which is generally known as Free on Board Hong Kong. In this process suppliers pay all expenses related to freight and carriage of goods, up to the port of Hong Kong and from Hong Kong the warehouse expenses are paid by you. The conditions related to payment are flexible and you can adjust them accordingly. Some common practices of payment include payment of thirty percent of goods value at the time of order and remaining seventy percent at the time of shipping of goods. With the money paid at the time of order, the supplier can easily meet the initial expenses on goods manufacturing. Apart from this general principle of payment you can resort to other modes also. However, payment of some percentage of goods value alleviates the problem of the buyer. As per your compatibility level with China suppliers you can adopt any suitable mode of payment. You can also opt for wire transfer method of payment. For this you should first confirm the varying charges of banks for wire transfer. Different banks charge different rates.


-Quality Control:
After selecting the mode of payment and placing the order, next step is to determine the criteria about quality control of goods from China suppliers. The criterion of quality control is fixed before the processes of manufacturing start. For this you are required to inform everything related to product like raw materials and manufacturing process, in advance to the China suppliers. When product is finally manufactured you can either rely on quality control standard followed by the manufacturer or appoint anyone in your own company to check it. You can also give the task of inquiring about the quality control to a third party or person. Generally, buyers involved in having large scale business with China suppliers prefer to spend maximum time on ensuring the quality of goods.