Christopher Tan Level 1 asked 2014-08-31

Trader/Middleman - supplier ships goods to buyer who is paying me by LC. Will I get to see the shipping documents? 1

Question Category: Payment Views: 87461

I am located in Singapore, supplier is in China (through Alibaba) and my buyer is in Africa.

Buyer issue LC to pay me, and I ask supplier to send goods directly to buyer in Africa. My questions are:

1. Is there an easier payment method where the buyer can be assured of receiving the goods ordered?
2. If the buyer still wants to use LC to pay me where do the shipping documents go to? I need the shipping documents to get paid.
3. How does the buyer's bank get the shipping documents if I make payment to the supplier via Alibaba's escrow payment?

Appreciate if someone can help me.

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Other Answers 17

  • Christian Liza 2014-08-31 Best Answer

    Hello Christopher:
    There is a big salad you have prepared, let`s try to eat it! I will try to solve your questions:

    1. Is there an easier payment method where the buyer can be assured of receiving the goods ordered?

    There are many easy methods (T/T, Credit card, money transffer, etc)...but the most safe payment method is: 1.- to pay by L/C. 2.-have an agent in China and 3.- inspect the goods before shipping the goods. This will assure the buyer to recieve the exactly ordered goods, complete and inspected.
    In your case, for your own security, the best option is pay the supplier in China by LC too. Second option is to use Alibaba Escrow and hire an Agent for better control.

    2. If the buyer still wants to use LC to pay me where do the shipping documents go to? I need the shipping documents to get paid.
    The shipping documents (Bill of lading), will go to you, because you are the "Buyer" of the goods in China. The BL will be send to you by courier from China to Singapure. After you recieve it, you can clear the LC in the Bank in Singapure (following the LC Terms guidelines from the buyer in Africa). If everything is ok, the bank will release the funds and you will get paid inmediatly.

    3. How does the buyer's bank get the shipping documents if I make payment to the supplier via Alibaba's escrow payment?

    The documents (original Bill of lading) will be shipped from the bank in Singapure to the buyer bank in Africa. This is the way the buyer in Africa will recieve the documents (BL) to release the goods container in Africa Port.
    If you make the payment by Alibaba Escrow service, I suggest strongly to hire an agent in China to assure the inspection of the goods and avoid any mistakes. remember this will go directly to Africa. The best way is to pay by LC.

    Hope this helps

    Christian Liza

    skype: decaltrademark1
    email:cliza@decaltrademark.com

    2 2
    • Elmedina Limani 2014-09-07

      why you dont back my money ?

      2 0
    • Basit Abbasi 2014-09-10

      1, There are lot of payment methods, but if you're ordering in bulk then LC is the best option. We also use CAD (Cash Against Documents) which is similar to LC and more flexible but your relations with supplier should have to be very good to adopt this terms. 

       

      2, The first thing about LC you should know is that LC is dealt with both supplier and buyer's bank (not individually) you can only set the terms in the LC then the bank will make the LC of your given terms and send it to supplier bank. After receiving & verifying the LC the supplier will make arrangements for shipping and contract documents & push you for payment once the docs are received in buyer's bank. Since you're middle man so you don't need shipping docs to get paid. You have to ask buyer or supplier from yourself for the payment. Neither you can hold the document to yourself because the LC & shipping docs are sent only to buyer's & supplier's bank. So I hope your relations are good with both supplier and buyer to get your payment.

       

      3, The buyer's bank get the shipping docs directly to their bank, you don't need to do anything. You have to select either of the payment method between LC and escrow.

       

      During all these process you can see the documents and other status but keep in mind that everything is between supplier and buyer. Middle man can only assist both parties in sending and receiving docs and other minor issues like amendments in LC.

       

      Hope you find this helpful :)

       

      Basit Abbasi

      Logistics Supervisor

      Seatrade Group

      0 0
    • Valery Borodko 2014-09-21

      Why don't you send me my bag? Or why don't you send my money back?

      0 0
    • olga timoshcenko 2014-09-19

      kak zakazat kyrtky

      0 0
    • ABEDUR RAHMAN 2014-09-16

      Can i choose PayPal for Payment

      0 0
    • mido777801 2014-09-16

       

      ok CHRISOPHER Tan
      buyer in Africa issue LC TO YOU(LC should be irrivicabale and transferbale from Prime Bank in Africa)
      YOU WILL TRANSFER LC TO SELLER IN CHINA
      seller in china will issue all doc to your company name
      you should issue commercial invoice from your company
      when u issue LC to seller in china,seller must write in bill of lading that notify will be your company,and packing list as well
      after that ,seller will give all original doc after shipping and stamping all doc and papers to his bank .
      bank of seller will send do direct to your bank in singapoer to revew doc
      after that you will check doc which issued by seller then your bank will send it to bank of buyer in africa
      when bank and buyer accept all doc
      bank of buyer will pay you through your bank
      well after you get money fom buyer bank ,you will give instruction to your bank to realese money for seller in china
      Best Regards
      Ahmed El shazly
      Export manager

      0 0
    • mido777801 2014-09-16


      b
      buyer issue LC TO YOU
      YOU WILL TRANSFER LC TO SELLER IN CHINA
      seller in china will issue all doc to your company name
      you should issue commercial invoice from your company
      when u issue LC to seller in china,seller must write in bill of lading that notify will be your company,and packing list as well
      after that ,seller will give all original doc after shipping and stamping all doc and papers to his bank .
      bank of seller will send do direct to your bank in singapoer to revew doc
      after that you will check doc which issued by seller then your bank will send it to bank of buyer in africa
      when bank and buyer accept all doc
      bank of buyer will pay you through your bank 
      well after you get money fom buyer bank ,you will give instruction to your bank to realese money for seller in china
      Best Regards

      0 0
    • osama allam 2014-09-15

      Hello nice Questions  you must first open LC to chinese seller take another LC from African buyer it's easy 

      br 

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    • Benoni Martyn 2014-09-15

      Q1. Western union

      Q2. send it by DHL

      Q3. send it by DHL

      0 0
    • Alexander peter 2014-09-13

      yes

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    supplierchannel010185240067