Deciding Factors of Payment Terms with the Supplier Company

Deciding Factors of Payment Terms with the Supplier Company

Presented By: Dragon Sourcing

Introduction

If you want to source goods or services from abroad, you can always go for China sourcing. China is one of the leading suppliers of resource at affordable terms. The sourcing agent dealing with the suppliers on your behalf will discuss with the payment terms with the supplying company. There is a lot of determining factors for negotiating terms of payment

History of Purchase Purchase history works with order value. For instance, if the size of your order indicates enhanced business for your supplier and your purchase history with a supplier is sound, you are considered to be in a good position to negotiate supply terms in your terms.

Scale of Supplier

Companies owned by state and large suppliers are rigid about terms of payment. The only exception in China sourcing is made by sourcing agents when they ask purchasers to increase the value of the order such that it reflects a big share of the business of the supplying company.

Risk Taking Attitude of the Supplier

The supplier’s tendency to rake risk and develop is a crucial factor in determining payment terms.

Those suppliers who want to develop their business b hook or crook often allow flexibility in payment terms so that they can attract more business.

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