Hey very interesting comment. I have a question: in which step do you normally pay the manufacturer in your example? Is this also handled via the agent?
The factory gets paid in step #1 (many can accept direct wire transfers or have Hong Kong/Singapore/ or even New York banks). Sometimes a deposit is made to start an order and the final amount is paid to release it from the factory after inspection.
There are agents who can handle funds on your behalf and when you work with a new factory or it is a super large order, it is common to use a service that will escrow the funds until the goods have been inspected and released.
Sometimes we even have our own staff monitor the assembly and packaging inside the factory to be sure the quality of parts we ordered are actually going into each piece. This is normal every day in Chinese factories, they know the game.
Hey very interesting comment. I have a question: in which step do you normally pay the manufacturer in your example? Is this also handled via the agent?
The factory gets paid in step #1 (many can accept direct wire transfers or have Hong Kong/Singapore/ or even New York banks). Sometimes a deposit is made to start an order and the final amount is paid to release it from the factory after inspection.
There are agents who can handle funds on your behalf and when you work with a new factory or it is a super large order, it is common to use a service that will escrow the funds until the goods have been inspected and released.
Sometimes we even have our own staff monitor the assembly and packaging inside the factory to be sure the quality of parts we ordered are actually going into each piece. This is normal every day in Chinese factories, they know the game.