Question 1

What is the best US dollar collection plan for the newly started B2B foreign trade SOHO?

Accepted Answer

The best option is to use a foreign trade collection platform (e. g. XTransfer) that is based on a large banking system but is operated by a professional fintech company. SOHO groups often lack the flow of proof of large entities, and the rejection rate of traditional banks is extremely high. The formal collection platform not only supports the registration of individual industrial and commercial households or small and micro enterprises, but also provides zero account opening fees and highly competitive exchange rates. It effectively enhances SOHO's professional image in the eyes of customers by providing enterprise-specific accounts, and at the same time perfectly meets the core needs of individuals or public accounts in the home country.

Question 2

How to legally and compliantly settle foreign trade B2B US dollar payment into RMB?

Accepted Answer

The key to legal settlement of foreign exchange is to provide the compliance channel with true and complete proof of trade background. The steps are as follows: first, make sure that your collection account is opened through a regular licensed financial institution, and second, when initiating the settlement application, submit the corresponding commercial invoice (PI), bill of lading, customs declaration or logistics delivery certificate as required. After the financial institution or platform verifies that the documents match the funds correctly, it will legally convert the US dollar into RMB according to the real-time foreign exchange quotation and liquidate it into the domestic corporate or legal person personal bank account bound by you. The whole process is sunny and transparent.

Question 3

What should I do when an overseas customer requests to use a third-party company to pay for foreign trade?

Accepted Answer

Caution must be exercised and documentation required for multi-party relationships to guard against the risk of money laundering and fraud. The first step is to require the buyer to issue a written payment authorization agreement, specifying the payment party information and the reason for the payment. The second step is to collect and retain complete evidence of the trade chain, including correspondence between buyers and sellers, PI and logistics documents. The third step is to proactively report this abnormal fund structure to your collection service provider and submit the above review materials. Only after the wind control system confirms that there is no risk of fraud or violation, can it be safely recorded and shipped.

Question 4

What is the difference between the fees and exchange rate losses of various foreign trade collection instruments?

Accepted Answer

The differences are mainly concentrated in the three dimensions of recording fee, withdrawal fee and exchange rate loss. Traditional offshore banks typically charge a single entry fee ranging from $15-$50, and settlement may result in additional deductions and large exchange differences due to intermediate bank transfers. Professional cross-border collection platforms, on the other hand, are generally exempt from entry and management fees, and only charge about 0.4 per cent of the handling fee for cash withdrawal or settlement. More importantly, the high-quality platform can provide access to the international inter-bank foreign exchange market real-time transparent exchange rate, avoid the traditional channels of opaque exchange rate plus points, greatly reducing the actual cost of foreign exchange loss.

Question 5

Why has my foreign trade collection account suddenly been placed under risk control investigation or frozen?

Accepted Answer

Accounts are usually frozen because an anti-money laundering (AML) alert is triggered or because of a suspected illegal transaction. Common reasons include: 1. Receiving unknown funds from high-risk areas; 2. Fast-forward and fast-out funds, and the amount is seriously inconsistent with the daily declared trade scale; 3. Suspected of illegal exchange of foreign exchange; 4. Unable to provide real and effective trade documents with clear logistics trajectory. The response is to immediately stop the relevant transactions, actively cooperate with the wind control team, and submit complete business link certificates (such as business contracts, customs declarations, etc.) to prove that the funds are normal real payment revenue.

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