Is the export agent running away with the funds? This guide to avoiding pitfalls can save you!

"Mr. Zhang never expected that the agency company he had cooperated with for 3 years suddenly lost contact, and 800,000 yuan of evaporated overnight." Such stories are not uncommon in the foreign trade circle. Export agent arrears is like the Damocles' sword hanging over small and medium-sized enterprises. Today, we will uncover the truth of this pain point in the industry.

1. The warm-water-boiling-frog of payment term delay

Ms. Li's clothing factory initially agreed with the agency to settle the payment within 45 days, but later it was gradually extended to 90 days. When the arrears accumulated to 2 million yuan, the other party suddenly applied for bankruptcy liquidation, and all the excuses of "reasonably extending the payment term" became bubbles.

2. The word play of yin-yang contracts

• The surface contract stipulates a prepayment of 30%
• The private agreement says "payment depends on the capital situation"
• In case of disputes, the court only recognizes written terms

Some agents transfer debts by registering shell companies. By the time the exporter realizes it, the original company has long become a shell. In the cases handled by the Zhongshitong legal team, this type of operation accounts for as high as 37%.

Line of defense one: Credit investigation cannot be skipped

Before cooperation, it is necessary to check the agency's:

• Customs Class AA enterprise certification
• Financial statements for the past 3 years
• Credit records of the actual controller

Require the agency to provide:

• Bank performance guarantee letter
• Real estate mortgage registration
• Joint liability guarantee of shareholders

It is recommended to check the agency's:

• Customs declaration data
• Tax payment situation
• Update of litigation information

Immediately start the "three-step emergency plan":

1. Complete evidence notarization (emails, chat records, statements) within 72 hours
2. Apply for property preservation to freeze the other party's account
3. Simultaneously initiate arbitration and criminal report (report to 110 if it involves contract fraud)

With the popularization of blockchain electronic bills of lading, in the next 3 years, it may be possible to achieve:

• Smart contracts automatically distribute accounts
• Real-time tracing of goods' property rights
• Default records shared across the network