Secured Payment
Bibhuti
(Querist) 22 June 2016
This query is : Resolved
I'm a registered dealer. When I sell my goods to any party, there is always a chance of bad debt. Does there any concrete mechanism exist to ensure me the payment. The party wants he would release the bill amount after the goods reaches him. Please dear experts, Opine...
Bibhuti
(Querist) 22 June 2016
I'm doing interstate business. plz suggest me whether any easy n concrete mechanism (Other than Letter of Credit/Bank guarantee) exists to get paid after the consignee receives the goods? plz Opine..
P. Venu
(Expert) 22 June 2016
Good theoretical question!
malipeddi jaggarao
(Expert) 22 June 2016
You are inter-state supplier and you know the mechanism of Letter of Credit and Bank Guarantee. Then what more you want to know?
Bibhuti
(Querist) 23 June 2016
Sir, I mentioned there if any easier mechanism exists (other than LC or Bank Guarantee),,,Caz LC or BG r both go through complecated processes having lots of criterias, buyers don't take headache in such things. So any other easier mechanism if exists, plz advice . Thanks
Bibhuti
(Querist) 23 June 2016
Sir, I mentioned there if any easier mechanism exists (other than LC or Bank Guarantee),,,Caz LC or BG both go through complecated processes having lots of criterias, buyers don't take headache in such things. So any other easier mechanism if exists, plz advice . Thanks
malipeddi jaggarao
(Expert) 23 June 2016
Letter of Credit mechanism is beneficial to both buyer and seller. The buyer's interest is timely consignment of required goods and the seller's interest is to get the payment immediately after parting/at the time of parting goods. Buyers agreement for such arrangement depends upon the demand of the goods you supply. Another mechanism available is routing the transport document viz., LR/RR through the buyer's bank, so that the buyer will pay the amount in the Bank and get the LR/RR. But it is risky as there is every possibility of taking delivery of goods by submitting indemnity to the transport company. The best way is Letter of Credit. If it is not workable in your case, you will have to take reasonable business risk.
Rajendra K Goyal
(Expert) 23 June 2016
It is a query regarding business procedure and not of law?
Discuss with consultant.
You can ask for advance payment of the goods supplied.
Bibhuti
(Querist) 23 June 2016
Go to 'Expert', then click on 'Category', in the sub menu u will find 'Legal Documents'. So my query comes under it. Other experts have responded to my query as well. Thus, it's a query obviously of law.
Kumar Doab
(Expert) 25 June 2016
Query has been replied by experts.
Nothing more to add.
Your establishment can engage and retain an able counsel for tailor made solutions and follow up.
T. Kalaiselvan, Advocate
(Expert) 25 June 2016
Your query may be a legal query to you but from the experts' point of view it appears to be an academic query, because you are fully aware of the business transactions and the official mode of recovering the amount i n the business, if you ask for more such system, it means you wanted to know any illegal method for taking money from the buyer in case he is not prompt in paying for the purchased goods. If yes, you can use your own prudence for it.
krishna mohan
(Expert) 27 June 2016
You may discuss with your banker and the client. You can negotiate through bank (all shipping documents will be handed over to your vendor's bank who will hand over through authorization letter. This is also subject to your vendor acceptance and depending upon your bargaining skills.
