Review the problems and handling in the contract

Before signing the contract, the merchandiser should explain to the customer the minimum order quantity for each product. In many companies, the job is to notify customers when new customers are developed. At the beginning of each season, some companies will send each customer the company's product catalog and minimum order quantity standards. The customer should be informed of this information at the latest before signing the contract and confirmed by the customer.

2. The customer’s payment terms in the contract cannot be accepted

Some customers did not describe the payment terms detailed in the contract in detail, such as simply saying that 30% advance payment. In this case, if the customer fails to pay the advance payment in time, the company will have difficulty deciding whether or not to produce according to the contractual deadline. If production starts, but the advance payment has not yet arrived, if it is not produced, it will be difficult to complete production within the contractual deadline. In this case, the merchandiser can negotiate with the customer and send the bank advance bill to the company within a certain period of time after the signing of the contract, otherwise the responsibility will be borne by the customer. Of course, the payment slip can be falsified. Usually, the advance payment can be made within 5 working days. The most secure is to wait for the money to arrive and proceed to the next step.

In addition, some customers in Turkey and the Middle East have given the payment terms of L/C 90 days after the departure. This payment condition is very risky. It mainly involves exchange rate risk and market risk. The exchange rate of the US dollar against the renminbi is constantly fluctuating, especially the depreciation of the US dollar in recent years. The appreciation of the renminbi has brought great losses to the company; as the demand in the international market continues to change, the market price of fabrics is constantly changing, if the customer Market saturation, price decline, customers may not take delivery of goods, no payment, especially in the case of some countries where the bank's credit system is not good, so this type of payment condition is potentially a great market risk.

In this case, the merchandiser should communicate with the customer as far as possible to allow the customer to accept our payment terms so as to ensure the company's smooth foreign exchange collection.

3, some of the terms of the credit can not be accepted

The letters of credit issued by some customers include some soft terms that prevent us from receiving foreign exchange in a normal manner. For example, a third party's quality assurance certificate must be included in the submitted documents. After the draft letter of credit expelled by the customer, the merchandiser should carefully review the content. If there is any clause that is not favorable to the seller, the buyer should be informed promptly and the terms of change should be negotiated.

4, orders are too tight

The delivery of the order was too tight. The factory did not complete at the time of production. In the peak season of production, when companies or companies take orders, they must pay attention to whether the delivery of orders is feasible. In principle, it is to ensure that the customer's delivery date is as much as possible, but if there are indeed difficulties, it is necessary to negotiate with the customer in advance, postpone the delivery date, and at the same time ask the customer to modify the order.

5. The price in the contract is inconsistent with the price previously confirmed by both parties

Some customers due to negligence or other reasons, when the order price or payment terms are not consistent with the previous confirmation of both parties, which requires the clerk to inform the customer to modify the order, and after receiving the modified order and then arrange the production of large goods.