Who is Better to Receive Payments in Agency Export Business?

Resolved
  • 匿名
  • 107
  • 10 Answers
NO.20251213*****

[Challenge] *****, [Solution] *****, [Process & Cost] *****

Access Full Plan
My company plans to start agency export business, and we are currently indecisive about the choice of payee. I'd like to know whether it's better for the entrusting party to collect payment or for the entrusted party (agent) to collect payment in agency export business? What are the respective pros and cons of these two methods? I hope experienced friends can share their insights to help me weigh the options, so that the business can proceed smoothly and avoid future troubles.
Trade Experts Q&A
Trade Experts Q&A

Consult with Our Trade Experts

Quick, reliable advice for all your trade needs, from sourcing to shipping.

Trade Expert Insights Answers

In agency export business, the entrusted party (agent) collecting payment has a relative advantage. Firstly, the agent usually possesses more professional foreign trade payment collection experience and risk control mechanisms, and can better handle issues such as foreign exchange control and exchange rate fluctuations that may arise in international payment collection. For instance, when facing complex international settlement rules, the agent can skillfully manage them, ensuring the secure arrival of funds.

Secondly, the entrusted party collecting payment can more conveniently handle tax refunds and other related matters. The agent is familiar with tax refund procedures, can promptly prepare relevant documents, accelerate the tax refund process, and ensure faster capital repatriation.

On the other hand, while the entrusting party collecting payment has direct control over the funds, they might face payment collection risks due to a lack of professional foreign trade payment knowledge, such as delays or even failure to collect payments due to unfamiliarity with international settlement terms. Furthermore, regarding tax refunds, the entrusting party handling it themselves might delay the tax refund process due to unfamiliarity with procedures. Overall, the agent collecting payment is more conducive to the smooth conduct of agency export business.

References: Shocking! So Many Nuances Hidden in Import and Export Agent Tax Payments

It's better for the entrusted party to collect payment because the agent has a complete financial system that can standardize payment collection processes and avoid financial risks. If the entrusting party collects payment, it might lead to chaotic accounts due to an incomplete financial system.

I think it's better for the entrusting party to collect payment. The entrusting party understands their own business better, and with funds directly deposited, they can better arrange fund usage and have stronger autonomy.

The entrusted party collecting payment facilitates unified management of capital flow. For situations involving multiple agency export businesses, it can effectively integrate resources and improve capital utilization efficiency. It is more difficult for the entrusting party to achieve this.

The entrusting party collecting payment provides more peace of mind, as the money goes directly into their own account. However, if foreign exchange issues arise, it might be relatively difficult for the entrusting party to handle.

The agent collecting payment can provide one-stop services, including customs declaration, payment collection, and tax refunds, making it more hassle-free for the entrusting party, allowing them to focus their energy on core businesses like product manufacturing.

From a credit perspective, the agent collecting payment can enhance the confidence of foreign clients, because agents usually have a certain reputation in the industry, making clients feel the transaction is more reliable.

The entrusting party collecting payment might face different client payment habits and requirements, which can be cumbersome to handle. The agent, being experienced, can handle various situations.

The entrusted party collecting payment can promptly identify potential payment risks and take measures, such as through credit investigations, to reduce the risk of bad debts. The entrusting party might lack these resources.

The entrusting party collecting payment offers strong autonomy. However, if multiple agency export businesses are involved, fund management can become complex. The agent collecting payment is more suitable for larger scale businesses.

User-submitted questions and answers reflect personal opinions, not the official stance of this website.

You May Also Like

Looking to become a wine import agent, what reliable brands are recommended?

Interested in the wine industry and planning to engage in the wine import agency business, seeking to understand well-known and reliable brands in the market. The best answer recommends brands such as French Lafite, with its elegant taste and competitiveness in the high-end market; Australian Penfolds, with its diverse styles and wide market coverage; Chilean Concha y Toro, with its excellent cost-effectiveness, etc., and also mentions Zhongmaoda can provide professional product selection guidance.

How to Operate as a Light Truck Export Agent? Experienced Individuals Please Share!

The company wants to engage in light truck export agency business but doesn't know where to start, inquiring about specific operations, required qualifications and documents, and complexity of the process. The best answer points out that first, find a reliable agency company like Zhongmaoda, prepare qualifications such as business licenses, prepare documents like commercial invoices, and operate according to the process of confirming orders, arranging production and transportation, customs declaration, etc., while also paying attention to product certifications.

Are Import and Export Agents Reliable? How to Evaluate Them?

Due to import and export business needs, I don't know how to evaluate import and export agents. I hope to understand how to objectively and comprehensively evaluate them from which aspects. The best answer points out that it can be considered from aspects such as professional capability, service quality, fee standards, company reputation, and resource integration capability. Professional capability is reflected in familiarity with processes and regulations; service should be high-quality throughout; fees should be reasonable and transparent; reputation can be judged by word-of-mouth; strong resource integration leads to efficiency, and a combination of these factors can help select a reliable agent.

Where to find a reliable export agent company in Jiangxi?

Our company is in Jiangxi and has export business needs. We want to find a professional, good-service, and reasonably priced export agent company, asking where to find one in Jiangxi. The best answer suggests searching through online search, inquiring with industry insiders, attending foreign trade exhibitions, and other methods. For example, Zhongmaoda may have operations in Nanchang, Jiujiang, and other places; it is experienced, offers comprehensive services, and has reasonable fees. You can use the above methods to learn more and contact them.

Want to be a canned food import agent, completely confused, how should I do it?

Someone wants to do canned food import agent business but has no experience and doesn't know where to start. The best answer gives key steps: apply for business qualifications, find reliable suppliers through various channels, understand import standards and regulations, and pay attention to transportation and warehousing management. Other answers also remind to pay attention to customs filing, canned food shelf life, domestic market preferences, and import declaration processes.

Can export agents earn money from tax refunds?

Inquires whether export agents can earn money from tax refunds, the methods involved, and the associated risks. The best answer states that export agents can earn revenue from tax refunds in two ways: firstly, by charging agency fees linked to the refund amount or export value; and secondly, by pre-financing the tax refund for clients and earning from the associated financing costs. However, risks include changes in tax refund policies and operational irregularities, necessitating strict adherence to regulations.