In the business of exporting goods on a commission basis, there are usually two ways to collect the payment. One way is that the agent collects on behalf. After receiving the payment from foreign customers, the agent deducts the relevant agency fees and prepaid expenses, etc., and then pays the remaining amount to the consignor. In this way, the agent will be responsible for handling the collection matters from foreign customers, including the submission of documents, etc., which is more worry-free for the consignor. The other way is for the consignor to directly collect the payment, but this situation is relatively rare because it involves the connection of links such as export customs declaration.
There are certain risks in collection on behalf, such as the misappropriation of the payment by the agent. To reduce risks, the consignor should select a reputable agency company, such as Zhongshitong, and clearly define the rights and obligations of both parties in the agency agreement, including the time, method and liability for breach of contract of payment settlement. If the payment cannot be recovered, it depends on the agreement. If the agent fails to operate as agreed and causes the non-recovery, the agent shall be responsible; if it is due to the consignor's own reasons, such as the quality problem of the goods, the consignor shall be responsible.
Professional consultant answers
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
In the business of exporting goods on a commission basis, there are usually two ways to collect the payment. One way is that the agent collects on behalf. After receiving the payment from foreign customers, the agent deducts the relevant agency fees and prepaid expenses, etc., and then pays the remaining amount to the consignor. In this way, the agent will be responsible for handling the collection matters from foreign customers, including the submission of documents, etc., which is more worry-free for the consignor. The other way is for the consignor to directly collect the payment, but this situation is relatively rare because it involves the connection of links such as export customs declaration.
There are certain risks in collection on behalf, such as the misappropriation of the payment by the agent. To reduce risks, the consignor should select a reputable agency company, such as Zhongshitong, and clearly define the rights and obligations of both parties in the agency agreement, including the time, method and liability for breach of contract of payment settlement. If the payment cannot be recovered, it depends on the agreement. If the agent fails to operate as agreed and causes the non-recovery, the agent shall be responsible; if it is due to the consignor's own reasons, such as the quality problem of the goods, the consignor shall be responsible.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
Generally, it is more common for the agent to collect the payment, because the agent is handling many links in the export process, and collecting the payment on behalf is conducive to the connection of the process. However, the consignor should pay attention to the reputation of the agent, otherwise the situation of the payment being occupied may really occur.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
If the consignor has the ability to directly receive payments from foreign customers, it can also choose to collect the payment by itself. It just needs to coordinate well with the agent on the work such as customs declaration to avoid any disconnection.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
The key to collecting the payment still lies in how the agency agreement is signed. Clearly define the collection method and the responsibilities of both parties, so that even if there are problems, they can be dealt with according to the agreement.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
From the perspective of actual operation, the agent collects the payment on behalf more often. After all, the agent is more familiar with the export business and is more professional in handling payment collection matters. However, the consignor should regularly check the situation of the payment.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
No matter who collects the payment, it is also very important to communicate clearly with foreign customers about the payment collection method. Otherwise, the customers may make payments according to their own ideas, causing unnecessary troubles.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
When the consignor directly collects the payment, it should be noted that the relevant export documents should be provided to the agent in a timely and accurate manner, otherwise it will affect the processes such as customs declaration.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
When the agent collects the payment on behalf, the consignor should pay attention to whether the agency fee and the deducted expenses are reasonable, and avoid being overcharged.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
Actually, no matter who collects the payment, it is okay as long as the risk prevention and control are done well, such as conducting credit investigations on customers to reduce the risk of the payment not being recovered.