In the agency export business, the subject of collecting bills of exchange usually needs to be determined according to the agency agreement. Generally, there are two common situations.
First, if the agent only provides pure agency services, only charges agency fees and does not advance funds, etc., then the bills of exchange are usually collected by the principal. Because the principal is the true owner of the goods and the main beneficiary of the trading benefits. In this case, it is convenient for the principal to directly collect the bills of exchange to control the cash flow and can arrange foreign exchange settlement and other matters by itself subsequently.
Second, if the agent undertakes more responsibilities in the business, such as advancing payment for goods, etc., then the agent may collect the bills of exchange. After collecting the bills of exchange, the agent will deduct relevant fees and advanced funds according to the agreement and pay the remaining amount to the principal. Meanwhile, whichever side collects the bills of exchange, it must operate strictly in accordance with relevant laws and regulations such as the Negotiable Instruments Law, do a good job in the custody, endorsement transfer or presentment for payment of the bills of exchange to ensure the safety of funds.
Professional consultant answers
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
In the agency export business, the subject of collecting bills of exchange usually needs to be determined according to the agency agreement. Generally, there are two common situations.
First, if the agent only provides pure agency services, only charges agency fees and does not advance funds, etc., then the bills of exchange are usually collected by the principal. Because the principal is the true owner of the goods and the main beneficiary of the trading benefits. In this case, it is convenient for the principal to directly collect the bills of exchange to control the cash flow and can arrange foreign exchange settlement and other matters by itself subsequently.
Second, if the agent undertakes more responsibilities in the business, such as advancing payment for goods, etc., then the agent may collect the bills of exchange. After collecting the bills of exchange, the agent will deduct relevant fees and advanced funds according to the agreement and pay the remaining amount to the principal. Meanwhile, whichever side collects the bills of exchange, it must operate strictly in accordance with relevant laws and regulations such as the Negotiable Instruments Law, do a good job in the custody, endorsement transfer or presentment for payment of the bills of exchange to ensure the safety of funds.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
Usually, it depends on how the agreement is signed. If the principal wants to control the funds, it can collect the bills of exchange by itself. After collection, it can ask the bank for collection or discount.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
Some agents, in order to protect their own interests, such as in the case of having advanced costs, will require to collect the bills of exchange and then settle with the principal.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
Generally, it is according to the business model. Under pure agency services, it is mostly the principal who collects the bills of exchange. After all, the goods and benefits mainly belong to the principal.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
If the agent is responsible for multiple matters such as transportation and customs declaration, it may also be negotiated that the agent collects the bills of exchange and then distributes the funds.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
Actually, the key is still the negotiation between the two parties. The collection of bills of exchange and subsequent handling should be clearly written in the agreement to avoid disputes.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
If the principal is familiar with processes such as foreign exchange settlement, it is more convenient for it to collect the bills of exchange and handle the funds by itself, and it can quickly turn over the funds.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
When the agent collects the bills of exchange, it should communicate the situation of the bills of exchange with the principal in a timely manner and handle the funds according to the agreement.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
From the perspective of risk, the principal's collection of bills of exchange can better control the financial risk and reduce the risk of intermediate links.