These days some protential customers want me to give better payment terms,such as D/A 60 days, L/C 120 days to start cooperation, it is really very hard for my company.
In China, there are some export tax return products, such as our product Sulfonate Naphthalene formaldehyde, without tax return, we lose money, and government regulation to report tax return within 90 days from B/L date, so we can't do L/C 120days.
now RMB/USD exchange rate is changing everyday, no one knows what is the rate after 30 days, so we don't do long term payment. our profits are thin, once RMB/USD rate change sharply, we might lose money.
though these protential customers are international big companies, but we do business on profits basis, my company strictly controlled the risk.
we think 30%prepayment and balance against presentation of scan B/L is even for buyer and sellers.
and for some customer who have financing requirement, we could accept L/C at sight.
we really want to expand our market, i know if we have better payment terms, we will win more customers, but it also will bring higher risk. we want to use attractive price to win customers.
our key products are Ferrochrome lignosulfonate, Chrome lignosulfonate, Chrome free lignosulfonate, sulphonated naphthalene formaldehyde, TBN booster, welcome to visit our website:www.wfychina.com
