DiFFreight Blog How to transfer money to your supplier in China?

How to transfer money to your supplier in China?

How to transfer money to your supplier in China?

The first thing for a successful money transfer is understanding the supplier's currency.

Suppliers in China may issue an invoice in US dollars or RMB and include all relevant payment details.

A dollar payment is typically made via SWIFT transfer (usually takes around three business days).

The transfer in RMB currency can be made directly to the supplier account.

It is good to know that the best option to pay a supplier is to discuss partial payment with the Chinese side. For example, split the payment into two transfers: 30% and 70% of the total cost. To start the payment process, the Chinese supplier must first issue an invoice so that you can choose the correct payment method.

The invoice must include:

  • legal information (company name and registration numbers);
  • delivery terms;
  • product information;
  • contacts of the manager or company representative;
  • an official stamp;
  • shipping costs the seller covers.

By working with DiFFreight, we can assist you and provide three solutions for the seamless payment process:

  1. SWIFT transfer in dollars with the company's payment details. Payments in dollars can take up to three business days.
  2. Assistance with money transfers via Alipay in RMB. Payments are typically completed within one business day.
  3. Payment in RMB directly to the supplier using the company's payment details.

Delivery of goods from China to Ukraine
Get more information

The payment assistance service is an additional service that is included in an all-inclusive package for working with China. It covers negotiation with the supplier, buying the goods, payment procedures, checking the cargo, and shipping it to Ukraine. It's as simple as that: You give us the link to the product, and we cover the entire logistics process.

According to our experience, many unpredictable issues may arise with invoices. The most common one is almost identical Chinese companies' names. Therefore, it is necessary to be attentive even with such minor details as the company name and carefully compare the names of the company you buy from and the company you pay for.

How Payment to Suppliers in China Is Made — Step-by-Step Guide

Paying a supplier in China has its own nuances related to currency restrictions, banking rules, and legal requirements. To pay for goods:

  • Receive an invoice from the supplier. The seller should send you an invoice specifying the payment amount, currency, bank details, and other necessary information. Once you receive the invoice, carefully check all the details.
  • Choose a method for transferring money to China. To make payments to suppliers in China, you can choose:
    • Bank transfer. For international transfers, you can use traditional SWIFT payments or modern online banking services. Some banks offer specialized payment systems for international operations.
    • Payment systems. You can transfer money through PayPal, Western Union, and other payment systems. However, note that PayPal is not always available for Chinese sellers due to its restrictions on transactions between different countries. Western Union is also not the most common method in trade with China, as it is usually used for transferring small amounts. The downside of using payment systems is their higher commission compared to alternatives.
    • Trading platforms. If you purchase, for example, on Alibaba, the platform may offer its own payment tools. Their advantage lies in the fact that tools like Alipay or Trade Assurance provide greater security for both parties to the agreement.
  • Prepare the documents. When transferring a payment through a bank, you will need certain documents. An invoice is a mandatory document confirming the cost of goods, the recipient’s bank details, and the signed contract.
  • Make the payment. You can visit a bank branch, provide the specialist with the necessary documents, and fill out a payment form. Some banks also allow international payments through their mobile apps or internet banking without visiting a branch. The time for funds to be credited to the recipient's account depends directly on the bank and the chosen transfer method. Typically, it takes a few working days.

Risks of Making Payments to China Independently

Now you know how to pay for goods in China. However, don’t forget about potential risks:

  • Payment blocking. Due to international sanctions, payments may be blocked or delayed. Additionally, if a transfer appears suspicious, it may be temporarily blocked for verification. Don’t forget about technical issues in banking systems, which may cause delays or loss of funds.
  • Legal consequences. Incorrect documentation may lead to negative legal consequences.
  • Fraud. Unfortunately, there’s a risk of transferring funds to fraudulent accounts. Scammers may also gain access to your banking information through phishing.
  • Proof difficulties. If you encounter payment issues, proving your case and recovering funds can be quite challenging.

Where to Order Financial Support for Deals in China

To eliminate possible risks, seek financial support services. DiFFreight provides a full range of services, including consultations on safe payment methods, assistance with preparing documents for transactions, as well as monitoring and protecting your interests at all stages of the deal. With us, delivery from China to Ukraine will be easier.

So, dear friends, here are some small tips for you:

  • avoid paying the supplier 100% of the price
  • carefully check all items in the invoice.

It's better to trust the professionals, because DiFFreight provides services search for supplier in China and purchase of product in China.

Our company wishes you successful deals and responsible suppliers. We are here to assist you with any questions.

Useful articles on our blog
Top 5 Products for Tourism from China That Will Interest Your Customers
Top 5 Products for Tourism from China That Will Interest Your Customers Read article
Icon
Delivery on DDP Terms
Delivery on DDP Terms Read article
Icon
Why can amazon get an account banned?
Why can amazon get an account banned? Read article
Icon