Finding a reputable overseas supplier

[ColchesterFC]

Mrs Colch has recently started her own business where she is selling handmade crafts as well as knitted/crocheted items. She is now looking to move into haberdashery as well (fabrics, ribbon, wool etc) and the supplier she is using in the UK is extremely unreliable and a complete cow (not the actual word I wanted to use but don't want an infraction).

We are looking to find an overseas supplier but have no idea how to go about this. Having looked on Google there are plenty of suppliers in China, Turkey and Eastern Europe who provide what she is looking for but how do we go about finding one that is reputable and will provide the goods after payment? To get the goods at a decent price we are looking at a bulk order and I don't want to risk giving her a large amount of money only for her to get ripped off.

If anybody has done this sort of thing or has any advice it will be gratefully received.

 

[Liverbirdie]

I would speak to her/your bank or local chamber of commerce.

You can sometimes do it against a letter of credit, cash against documents type of transaction (as long as the supplier agrees to this). This way you only pay after receiving the goods.

Maybe ask them for trade references also, and fully check them out.

You could also try India out, although the're currently having large bank/inflation/currency problems.

 

[IanG]

My mrs also runs her own craft business and buys a lot from

https://www.etsy.com/uk/people/nicoledebruin

Service & quality is excellent .


Good luck - it's a tough way to make a living, but hopefully a happy one.

Ian

 

[351DRIVER]

I would speak to her/your bank or local chamber of commerce.
The bank will know jack **** about overseas suppliers

You can sometimes do it against a letter of credit, cash against documents type of transaction (as long as the supplier agrees to this). This way you only pay after receiving the good
In Dragons Den theory you can, but on a first order your chances are exactly zero.

So how does that work
Factory i do not know, can you prepare your machines, get your raw materials to gether, have your staff work on my design, pack it and ship it at your cost and i promise when it arrives I will pay! Asker for a sample, do not expect it to be free either (They are not desperate for a person who MAY place a small order later). If it is free great, if it is not free PAY FOR IT, they get enquiries all the time from potential businesses that never go ahead.

Maybe ask them for trade references also, and fully check them out
If they are out to con you, these will simply be fakes

You could also try India out, although the're currently having large bank/inflation/currency problems.[/QUOTE

I suggest you join UK BUSINESS FORUMS, you will find actual business people on there, some of whom are sourcing specialists and can actually do the checks for you. Alternatively speak to people who are in the business and you know have production overseas.

find people who know what they are doing and the Bank i can promise you is not one of them.

If you are doing this seriously, get on a plane and go visit them, i know of good companies that offer inspections of the facilities..

Tried to send a pm not sure if it worked

 

[ColchesterFC]

Tried to send a pm not sure if it worked

Cheers for all the info.

Haven't received a PM so don't think it did work.

 

[Liverbirdie]

I would speak to her/your bank or local chamber of commerce.
The bank will know jack **** about overseas suppliers

You can sometimes do it against a letter of credit, cash against documents type of transaction (as long as the supplier agrees to this). This way you only pay after receiving the good
In Dragons Den theory you can, but on a first order your chances are exactly zero.

So how does that work
Factory i do not know, can you prepare your machines, get your raw materials to gether, have your staff work on my design, pack it and ship it at your cost and i promise when it arrives I will pay! Asker for a sample, do not expect it to be free either (They are not desperate for a person who MAY place a small order later). If it is free great, if it is not free PAY FOR IT, they get enquiries all the time from potential businesses that never go ahead.

Maybe ask them for trade references also, and fully check them out
If they are out to con you, these will simply be fakes

You could also try India out, although the're currently having large bank/inflation/currency problems.[/QUOTE

I suggest you join UK BUSINESS FORUMS, you will find actual business people on there, some of whom are sourcing specialists and can actually do the checks for you. Alternatively speak to people who are in the business and you know have production overseas.

find people who know what they are doing and the Bank i can promise you is not one of them.

If you are doing this seriously, get on a plane and go visit them, i know of good companies that offer inspections of the facilities..

Tried to send a pm not sure if it worked

I didn't say that the bank will know overseas suppliers, just that they can help with advice on letters of credit, cash against docs etc.

Trade references - as stated check them out, suggesting that they supply UK companies.

Outside of that, crack on Richard Branson.:thup:

 

[351DRIVER]

I didn't say that the bank will know overseas suppliers, just that they can help with advice on letters of credit, cash against docs etc.

Trade references - as stated check them out, suggesting that they supply UK companies.

Outside of that, crack on Richard Branson.:thup:

ADVICE on letters of credit? You mean the bank is going to Guarantee this order, interesting theory.

This will be the bank advice, pay them as they will want paid, funny that..

 

[Liverbirdie]

ADVICE on letters of credit? You mean the bank is going to Guarantee this order, interesting theory.

This will be the bank advice, pay them as they will want paid, funny that..

Nope, they are going to advise on how to do a letter of credit..... https://www.barclayscorporate.com/products-and-solutions/trade-solutions/letters-of-credit.html .....or have i just made this up?

They guarantee your payment to the supplier, after goods have been received.

Have you also considered that the supplier may already have these items already on stock, so would be willing to enter into this type of agreement on a first order basis?

 

[Sweep]

A letter of credit is simply a way for a bank to guarantee payment to the supplier at a mutually agreed maturity date. Usually when the goods are shipped and Bill of Lading provided or when they arrive at UK docks. In actuality the bank doesn't risk its own money because they take it from their customer beforehand. It's just a way of paying up front without the risk of the supplier taking the cash and not supplying the goods. It is a widely used method. There are nuances, like everything on the invoice has to match the L/C word for word which is not always easy when dealing with a foreign company. Your bank will have a foreign transaction department who will be happy to advise you.
You will find there are agents who work in China and probably other countries who source goods for you on a commission basis.

 

[Liverbirdie]

A letter of credit is simply a way for a bank to guarantee payment to the supplier at a mutually agreed maturity date. Usually when the goods are shipped and Bill of Lading provided or when they arrive at UK docks. In actuality the bank doesn't risk its own money because they take it from their customer beforehand. It's just a way of paying up front without the risk of the supplier taking the cash and not supplying the goods. It is a widely used method. There are nuances, like everything on the invoice has to match the L/C word for word which is not always easy when dealing with a foreign company. Your bank will have a foreign transaction department who will be happy to advise you.
You will find there are agents who work in China and probably other countries who source goods for you on a commission basis.

Well done Sweep.

True, informative and without a hint of condescension.:thup:

 

[ColchesterFC]

Thanks for all the advice. Still at the planning stage at the minute but have copied it all down ready for when we are ready to move forwards with it.