Final Payment to Your Supplier
We can not stress enough how important it is to be certain that you are completely happy with your received goods before making the final payment.
The products should meet all of your requirements and also the compliance regulations. You will probably not be able to get any form of direct refund afterwards.
1. When to make payment
Suppliers may get pushy at this point for the balance payment however so long as you are abiding by your contract you will have time to ensure everything is in order before settling the balance. Only pay once you are 100% sure of the following. Most should be checked by your inspection company:
- Product Inspections / Packaging Checks / Number of Units
- Bar codes correct
- FBA Labels – Amazon
In the precious module we looked at common ways of making deposit payments.
When the amounts are large, which they will be when you are making your balance payment there third-party money transfer options to provide you with protection.
Alibaba Trade Assurance – Good for beginner traders but Alibaba will take a fee. Alibaba holds the money until satisfactory goods are confirmed and then releases the funds to the supplier.
Veem, Worldfirst, Payoneer – can also be a good options if the supplier has an account set up with them. It would require you speaking with the supplier and contacting these firms directly to find suitable ones that you are happy with. They make their money mainly from conversion fees.
Wire Transfer: This is usual business practice. It offers less security for you however you will save money on 3rd party fees. Ensure you have the SWIFT code, bank name, account name, account address, description of goods, amount. Best to use this option if you are confident of the supplier and their trustworthiness.
- Always take a copy or download a pdf statement of the payment transaction. Submit this to your supplier to show them that the payment has been made. It should show the details of the transferor, transferee as well as dates and times that the transaction was made alongside the amount.
- Some suppliers may also accept balance payment after sending a copy of the BOL – (Bill of Lading). The original document will still be required to release the cargo.
- Whichever payment route you choose, be mindful to always only pay the balance to the bank account of the supplier. This will avoid any money laundering or fraud issues.