There are mainly three common settlement methods for Jiasheng's agency export. First is telegraphic transfer (T/T). Foreign customers directly transfer the payment for goods to the account designated by Jiasheng. It is fast in receiving funds and the process is simple. During the operation, Jiasheng will provide the receiving account information to the customers. After receiving the payment, the settlement will be made according to the proportion agreed with your company. Second is the letter of credit (L/C), which is relatively safe with the bank acting as a third-party guarantor for payment. After receiving the letter of credit, Jiasheng will review it. Once the documents are in conformity, it can receive the payment and then settle with your company. Third is collection, which is divided into documents against payment (D/P) and documents against acceptance (D/A). For D/P, the customer can only get the documents to pick up the goods after making the payment; for D/A, the customer can get the documents to pick up the goods after accepting the bill of exchange. The risk of D/A is relatively high. Regarding the settlement cycle, T/T usually takes 3 - 5 working days to receive the funds, the processing time of L/C is a bit longer, and for collection, it depends on the payment speed of the customer. The main settlement risk is the fluctuation of exchange rate. Generally, Jiasheng will assist in avoiding it through tools such as forward foreign exchange contracts.
Professional consultant answers
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
There are mainly three common settlement methods for Jiasheng's agency export. First is telegraphic transfer (T/T). Foreign customers directly transfer the payment for goods to the account designated by Jiasheng. It is fast in receiving funds and the process is simple. During the operation, Jiasheng will provide the receiving account information to the customers. After receiving the payment, the settlement will be made according to the proportion agreed with your company. Second is the letter of credit (L/C), which is relatively safe with the bank acting as a third-party guarantor for payment. After receiving the letter of credit, Jiasheng will review it. Once the documents are in conformity, it can receive the payment and then settle with your company. Third is collection, which is divided into documents against payment (D/P) and documents against acceptance (D/A). For D/P, the customer can only get the documents to pick up the goods after making the payment; for D/A, the customer can get the documents to pick up the goods after accepting the bill of exchange. The risk of D/A is relatively high. Regarding the settlement cycle, T/T usually takes 3 - 5 working days to receive the funds, the processing time of L/C is a bit longer, and for collection, it depends on the payment speed of the customer. The main settlement risk is the fluctuation of exchange rate. Generally, Jiasheng will assist in avoiding it through tools such as forward foreign exchange contracts.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
When settling, attention should be paid to the change of exchange rate. It is better to negotiate with Jiasheng in advance about the countermeasures, such as agreeing on the range of exchange rate fluctuations. If it exceeds, how should the two parties share the risks to avoid losses caused by large fluctuations of the exchange rate.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
Telegraphic transfer settlement is very convenient, but it is necessary to ensure that the account information provided by Jiasheng is accurate and error-free. Otherwise, it may lead to incorrect remittance or delay, affecting the settlement time.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
Although letter of credit settlement is safe, it has strict requirements for documents. Jiasheng will assist in the review, and your company also needs to ensure that the documents provided meet the requirements. Otherwise, it may affect the receipt of payment.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
For collection, D/P is relatively safer because the customer cannot get the documents for picking up the goods without making the payment. But D/A has risks. After the customer accepts, he can pick up the goods. In case of non-payment, there may be a situation where both the money and the goods are lost. So it should be chosen carefully.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
Before settlement, it is necessary to clarify the detailed expense items with Jiasheng, including agency fees, handling fees, etc., to avoid disputes during settlement.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
After Jiasheng receives the payment for goods, the time for settling with your company will usually also be agreed in the cooperation agreement. You should carefully read the terms of the agreement to protect your own rights and interests.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
If problems are encountered during the settlement process, it is necessary to communicate with Jiasheng in time. They should have professional staff to assist in solving the problems. Don't delay and make the problems more complicated.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
Pay attention to the international political and economic situation, which may affect the willingness and ability of customers to make payments, and further affect the progress of settlement. Prepare in advance to deal with it.