Question 1

At present, what is the preferred US dollar settlement scheme for domestic B2B export enterprises?

Accepted Answer

At present, the preferred solution is the sunshine settlement service provided by the foreign trade digital settlement platform. Compared with the traditional underground bank or personal quota settlement, the formal platform is directly connected with domestic and foreign compliance banks and payment institutions, and supports the direct settlement of US dollar payment into RMB according to the real-time exchange rate and liquidation to the domestic account of the enterprise. This approach is not only transparent exchange rate, no hidden foreign exchange loss, but also the whole process in line with the regulatory requirements of the State Administration of Foreign Exchange, the capital link is clear and legal, the perfect solution to the B2B export enterprises difficult to collect, difficult to settle the core pain points.

Question 2

How do foreign trade enterprises regulate the provision of trade background information required for collection?

Accepted Answer

The key to standardizing the provision of information is to ensure that the three streams are integrated, that is, the flow of funds, logistics and information is consistent. When the platform or bank initiates the collection declaration, the enterprise should prepare a complete commercial invoice (PI), packing list, communication record between buyer and seller, and the corresponding logistics or bill of lading certificate. For custom products, it is best to provide production or scheduling records. When submitting information, it is important to ensure that the buyer's payment subject is consistent with the contract signatory. In the case of payment, additional formal payment authorization instructions issued by the buyer must be provided to meet the anti-money laundering compliance review.

Question 3

What if the machinery and equipment export industry encounters a non-contract payer to pay?

Accepted Answer

In the event of payment by a non-contractual payer, the payment relationship supporting documents must be immediately supplemented to prevent the funds from being returned or frozen. The value of a single item of machinery and equipment is high, and the bank's wind control is extremely strict. The enterprise is required to obtain from the buyer a payment agreement signed or sealed by its actual controller, clearly stating the relationship between the payer and the purchaser (e. g. parent and subsidiary, long-term cooperative agent, etc.) and explaining the reasons for the payment. These supplementary materials are submitted to the collection agency together with the original trade contract, and can be safely recorded after being approved by the compliance department.

Question 4

Which is better than direct cross-border wire transfer versus local clearing network collection?

Accepted Answer

Local clearing network collection experience is better in most B2B scenarios. Traditional cross-border wire transfer needs to go through a number of intermediary banks, not only the handling fee is as high as tens of dollars per transaction, but also the time to receive the account usually takes several working days, and there is even the problem of full payment. A local currency collection account, which relies on a local clearing network, is equivalent to a buyer making a local transfer at a bank in their own country. This approach usually achieves same-day arrival with almost no intermediate bank fees, significantly improving the buyer's payment experience and the seller's capital turnover.

Question 5

What are the fatal mistakes that small and medium-sized foreign trade enterprises often make when choosing collection channels?

Accepted Answer

The most fatal mistake is to covet low rates and ignore the platform's compliance and financial security. Some enterprises use illegal channels without payment licenses, once the channel is seized, the enterprise funds will face the risk of total loss. Another common mistake is the mixing of public and private accounts and the use of personal accounts to receive large amounts of public trade funds, which not only easily triggers the red line of foreign exchange control, but may also face tax fines. When screening channels, enterprises should take compliance license, wind control ability and after-sales service response speed as the core consideration indicators, and do not lose the big because of the small.

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