Hi Guys In my business from China I supply products. I basically supply: 1. Sites - Group buying mostly and other such. 2. Partners - Local B to C sites that also supply other sales channels.
In many cases we work on upfront payment or payment splits, 30% now, 70% on arrival of products to you or your customers etc. In some cases we take total risk - 100% paid later.
Does anyone know of any way to protect this type of service, could factoring apply? Such as a 3rd party that assesses us and the partner or buyer, then guarantees the payment in the middle to an extent and provides us 80% of the contract amount for a fee?
We are asking now as a partner recently went into claimed bankruptcy in EU owing us upwards of 100k usd. We now have more processes in place to assess buyers (You can see its not always the China company that is the bad guy
Any systems, any companies, any advisers that are known and recommended I am interested to speak to - all advice welcomed - thanks for your consideration.
Hi Tim, sorry to hear about the buyer going bust many businesses have been sunk that way.
I can't recommend a company myself but I'd say it is invoice factoring / financing you are looking for. In the UK (and US) there are several companies that advertise along the lines of "supply chain finance", "wholesale and distribution finance" etc.