How we work
Proof of product:
The first thing the buyer asks for is the proof of product, asking the seller to prove that the product exists, otherwise he will not be interested to start the negotiation.
And many buyers make a big mistake when they ask the seller to send pictures or videos, for they think that this is a hard evidence that the seller has the product, while many scammers use this point and send whatever pictures the buyer needs, and make any videos the buyer requests, while they do not have the product.
Scammers send pictures or videos saying that this product is for this client, while it is not. And they usually make videos of a product which is not theirs, or it is theirs but it has been already sold to another client.
“Thus, pictures and videos are not a proof of product,
and could not be a hard evidence”
What could be hard evidence then?
Well, the hard evidence which proves to you that this seller is real and will deliver the product could be:
1. The report of a third party, which be issued by an organization other than the buyer or the Seller.
This third party is usually the SGS report, or any other equivalent neutral organization.
SGS stands for (Société Générale de Surveillance), and it is s a Swiss multinational company headquartered in Geneva, Switzerland, with almost 90.000 employees, and provides inspection, verification, testing and certification services.
Please visit: https://www.sgsgroup.com.br/
Third party makes its report at the site, including all product information related to weight, quality, product temperature, packaging, and all other specifications which are written in the contract between seller and buyer.
And if there is any different between the two, the third party will not approve the product.
Now, what if the term of payment is TT, which requires a down payment to be made from the buyer before reaching to the SGS report?
It this case there is high risk for the buyer, so the following suggestions could be good solutions:
2. Suppliers which the FACTORIES themselves indicate to you.
You will have to contact the factories, which will tell you that they either do not have an export license, or they have already sold their annual production to trading companies, but they can indicate to you these companies, so you will have an absolute evidence that these companies have the product, and they will also deliver it to you.
3. The delivery history of the seller you are about to make a deal with.
The third option which could be considered as a hard evidence, and give you the key to trust the supplier is this:
When you make a diligence search about the seller, you can get his history of delivery, the delay in delivery, or the failure to deliver the product. You will have to search whether there is any thing against him in the courts (you can visit https://www.jusbrasil.com.br/home ) and you can test his website (https://dirtyscam.com/ for example) and so on.
Then you can evaluate your seller, and decide to trust or not to trust him.
Please note that there are many old companies in the market but they are fake, while there are many new ones but they are trustworthy.
At the end, your negotiations with any supplier should give you a good or a bad impression, then you can make the right decision.
Terms of payment:
Terms of payment depend on the product. For every factory deals with specific terms of payment and accepts only one or two terms.
Most of chicken factories in Brazil ask for a down payment, where the buyer should pay %30 and up to %100 in advance in order to supply his purchase order.
From this point and on, fraud attempts start, and many scammers use this point, asking for an advance payment, and then they never deliver the product, neither pay the buyer back.
Because of that there are many clients insist to issue only DLC or only SBLC, for they had this bad experience with one or more suppliers. So this behavior is just a reaction, so they will keep looking for a company which accept their DLC or SBLC but they will not find, perhaps they will be lucky to find a big supplier who accepts that, but it is rare, and could not be a rule.
To us: We accpet both down payment and DLC, and all depend on the product, quantity, destination, etc.
In sugar, we usually deal with SBLC, for many of sugar factories in Brazil do not accept neither DLC nor LC. But when Chinese client comes, (and as we know: china does not issue SBLC), we accept the DLC from him and we issue the SBLC to the factory, so we play the role of financial problem solver.
Proof of fund:
Many suppliers ask the client for a proof of fund before starting the negotiation, pretending that they have passed many bad experiences with some clients in the past, and in order for them to trust that the client has the financial capacity he should send a proof of fund.
For us, it is different, for we ask our client to fill in the Client registration Form, which has some questions the client should answer, and through his answers we can discover whether he is serious and has the financial capacity or not, and normally, especially in sugar, proof of fun is the MT799 which the client’s bank issues to our bank, and it is free, confirming his guarantee of the purchase. And this happen after the negotiation, for we have already known our client.
Be our client, and get your Client Registration Form here.