Recommendations About Selling On Credit

[Zen]

i'm going to sell some products on credit to some shops. Is it ok if I asked them to give me a copy of their company registration? do i also have to ask the id card copy of the authorized signatory?

i ever had advertising agencies and other companies that give me credit terms, they asked me for these two documents. i wonder what they do with it.

any other suggestions are most welcome. Thanks alot.

Edited May 26, 2010 by Zen

[jackdawson]

Recommendations About Selling On Credit

yeah , if it's in thailand , just take the $$$ u were expecting to make and burn it ; less stressful that way

[talk2sam]

What is Your business relationship with the customer? Better to get documented evidence, properly awritten agreement and the documents you mentioned.

[ESB7]

Dont lend to anyone in Thailand, foreign or Thai, you will struggle to get the money again

[soundman]

Giving credit can turn into a nightmare in Thailand.

Why do the shops want credit? Usually because thay have not got the money to pay their bills, don't want to take a risk on your products, want un-secured finance etc. etc.

If you must give credit to do business, try to adhere to the following.

- Copy of Company registration documents. (หนังสือรับรอง - nung sue rup rorng)

- ID Card & Tabien Bahn for individual (highly recommend you do not give an individual credit without a signed and (post) dated cheque for the goods/services, and don't forget this has a validity limit of six months for some banks)

- A signed agreement of credit terms. (post dated cheques, once again, are probably your best form of insurance against default)

- A late clause in above agreement stipulating interest penalties and collection costs to be born by the customer. (make sure your interest rate is not over maximum allowable by law, which I believe is 15% per annum)

- Your own appraisal of the business you will be supplying. Do they look like they can pay? Lots of customers? Do the owners/managers look competant? Do they look dodgy? (Have to trust your instinct on that one) Is it possible that you may know their other suppliers? (Talk to them - Thai's love to gossip).

Good luck.