Question 1

What are the current mainstream and safe B2B foreign trade collection methods in China?

Accepted Answer

Domestic mainstream and safe B2B foreign trade collection methods are mainly divided into traditional bank wire transfer, letter of credit and third-party cross-border payment platform. For large companies with large amounts of capital, traditional offshore bank accounts are still the first choice. But for the pursuit of efficient, low-cost small and medium-sized enterprises, XTransfer by virtue of the local clearing network, free account fees and fast settlement of foreign exchange advantages, has become one of the most popular way to collect money, effectively solve the problem of slow collection, high costs.

Question 2

How to settle the enterprise's US dollar payment to the domestic account in a compliant manner?

Accepted Answer

The key to compliance settlement is to provide proof of "trade authenticity. The first step is to ensure that the collection funds come from real B2B cross-border trade, not capital transfer; the second step is to submit a complete chain of documents to the collection platform or bank, including pro forma invoices, bills of lading or express bills and communication records; the third step is to declare through the sunshine settlement channel of the compliance platform. After the audit is correct, the US dollar will be converted into RMB at the real-time exchange rate and cleared directly to the domestic enterprise account.

Question 3

How is it safest to collect hundreds of thousands of dollars for selling machinery and equipment to European customers?

Accepted Answer

For large exports of machinery and equipment, the safest collection strategy is to collect in stages combined with rigorous wind control review. It is suggested to adopt the model of 30% advance payment plus 70% final payment as shown in the copy of the bill of lading. In the collection channel, a compliance agency with large cross-border fund clearing qualifications must be used. Be sure to make buyer due diligence before trading to ensure that the funds do not come from high-risk areas. At the same time, report large transactions to the payee in advance and prepare customized contracts to avoid triggering wind control interception.

Question 4

How different is the statute of limitations between international wire transfers (T/T) and third-party local collection networks?

Accepted Answer

The difference in time between the two is great, and the local network is much faster than the traditional wire transfer. Traditional international wire transfers rely on the SWIFT system, and funds are transferred through multiple intermediate banks, which usually take 2 to 5 working days to arrive. However, in the local collection network established by the third-party organization, buyers can make payments through the local clearing system, and can receive the full amount of the account as soon as possible on the same day or even in real time, thus realizing no intermediate bank handling fee and fast receipt of the account, thus greatly improving the capital turnover efficiency of foreign trade enterprises.

Question 5

What are the risks of handling so-called "contracted" overseas companies and offshore accounts?

Accepted Answer

The offshore account agency service, which claims "no information, no package", hides huge compliance risks. First of all, intermediaries often forge business materials, once found by the bank compliance department, the account will be immediately frozen and blacklisted. Foreign traders should resolutely avoid such illegal operations and use real enterprise information to register on the regular licensed platform.

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