Whether you have contacted factories yourself and negotiated prices or you have used our sourcing services, we can handle all the buying, contracts and payments for you!
Before we make any payments to factories on your behalf, we first will verify that they are legitimate. Once it has been confirmed that they are a company of good standing, we will proceed to sign contracts and pay initial agreed deposits.
How it works:
The standard payment terms in China are 30% deposit on confirmed order, with the remaining 70% due once the goods have passed your final quality control checks or are delivered to your selected port or export in the case of FOB terms. It is often wise to structure payments to factories contingent on product goals and delivery deadlines being achieved. The factory will be much more responsive and eager to meet deadlines when they are waiting for the remaining 70%. This is great for you in regards to negotiations over late deliveries or quality issues. The remaining balance should never be paid until a full quality control audit has been carried out by your own independent inspectors.
Another advantage of using China Factory Sourcing's buying services are that your goods will be paid for in Chinese Yuan. This will often encourage lower pricing from from factories, as they won't be loosing money on currency conversion commission to the banks on US dollar payments.
Once all pricing has been agreed and contracts signed you will need to pay your agreed deposit to the factory. You can do this safely through our Chinese Bank of China account or our Hong Kong HSBC bank account.
This will then be forwarded on to the factory in Chinese Yuan on your behalf. When your order has been completed and quality control checked we will the arrange payment of the remaining balance. Your goods will then be sent either to our Shenzhen warehouse or to the port of export from China.
Once we have the full details of your order, we can begin to calculate the shipping costs and make whatever shipping arrangements are necessary for your chosen transport method. You can choose from a wide variety of different shipping options that will best meet your budget and also required delivery time needs.
All payments for shipping and handling will then be billed by our logistics company for payment and your goods will then be shipped out.
Why you need contracts!
Sales contracts with Chinese factories are critically important.
All your detailed product specifications should be included in your contract. Anything that you do not include may come back to bite you later, so be sure that exactly what you need down to the smallest details are included in your contract. Your China Factory Sourcing account manager will be experienced in creating detailed contracts with Chinese factories and will help to guide you through this process.
At this point we should have a complete picture of exactly what you need e.g.: specific item colors, product dimensions, packaging details etc... Once you agree that every thing is correct, we will sign the contracts on your behalf and manufacture of you goods will begin with your chosen factory.