The “big order” sent to the door, was cheated 500,000 U.S. dollars! 10 years old foreign trade salesman: I was dumbfounded that time

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My friend’s company is in the cling film business. Here is his story.

In May this year, we received a purchase invitation from a UK company, and after several communications, we confirmed the partnership with them.

The shipment is worth 500,000 USD and is expected to be sent out in two batches from Qingdao port to a third-party Bulgarian branch.

The sale was done on credit, with an agreement to pay a 50% deposit in advance and a 50% final payment upon seeing the copy bill of lading.

After the goods were shipped out, the boss suddenly felt that the transaction amount of the goods was too large, and this was still a new customer, the first cooperation, a little worried about the creditworthiness of the buyer, afraid that the customer would not pay for the goods, so he found the DCA international risk control platform to check the credit report of the company.

Crisis! Buyer on the verge of bankruptcy!

The key messages I received back from DCA were the following.

(i) The company was in a dire financial situation this year and was on the verge of bankruptcy.

② No information was found about the Bulgarian branch of the third party receiving the goods.

③The buyer company’s situation is complicated, with 2 investors and 1 operator.

Doing foreign trade for so many years, although I have encountered many irresponsible buyers, this time is still to give me a blow to the head!

We all know that foreign trade is not as good as we thought, and this year is particularly difficult. We shipped goods that have arrived at the destination port to be taken away, if once the payment can not be recovered, the property and goods are empty, may affect the security of the company’s capital chain.

“Internal discussions, the chances of getting the money back are slim!”

At that time, the company met internally to discuss the buyer’s attitude first, in case they paid.

But the reality threw a pot of cold water on everyone, the buyer sent an email saying “the company’s cash flow is currently tight and it will take some time before the final payment can be made”.

The company was left with no choice but to rush and wait for such a shady buyer.

At that time, the company’s legal, foreign trade, and financial personnel took turns to send emails every day to urge the buyer, but the buyer’s three parties (two investors and one operator), the matter of the outstanding money to each other, resulting in the final payment can not be implemented.

And once the buyer declared bankruptcy, the chance of getting the money back was 1%!

Professional intervention and successful recovery of payment

I had no choice but to find a local collection specialist in the UK for debt mediation assistance on the DCA international risk management platform.

Because local collection experts understand the local customs and legal knowledge, they can conduct local interviews and even legal pressure on UK companies. Moreover, DCA’s platform merchants can communicate with the collection experts on a one-to-one basis, and the progress of collection can be communicated in a timely manner, just as convenient as Taobao’s logistics inquiry system.

After 2 weeks, the collection specialist told me that the other party was willing to pay 90% of the purchase price, and after communication with the company’s leadership, it was decided that it was OK.

The debt was finally successfully collected within 20 days after finding DCA!

Some suggestions from foreign trade veterans.

①: before the transaction, the buyer’s company conducts a detailed corporate credit investigation, to understand the buyer’s business conditions, company structure, etc., to make timely plans to adjust the payment method or even terminate cooperation.

②: During the transaction, keep track of the enterprise’s capital and operation status, and propose corresponding treatment plans such as timely payment reminders or continued cooperation.

  1. Difficulties in recovering outstanding payments should be solved by finding local collection experts as early as possible to avoid wasting resources such as human and material resources. If collection is unsuccessful, a lawsuit should be filed with the buyer.

DCA platform has a total of 258 overseas experts online, covering 99.52% of the countries and regions in the world, providing 1-to-1 communication services, real-time translation, and powerful disintermediation advantages to make the collection process easier and more reliable. DCA platform also upholds the principle of “no success, no charge” in the case of collection (non-litigation mediation) to solve your repayment crisis; after the failure of pre-litigation mediation, the global experts of the DCA platform can also provide you with legal litigation services to solve the troubles of enterprises about the different legal systems at home and abroad!


Business Director at Shanghai Fumao Clothing Co.,LTD

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