Importing from China to Nigeria Payment Terms

 There are several ways you can use to pay for your import from China to Nigeria.

However, not all these payment options are secure for you to use.

Nigerian Naira

Whichever method you choose for payment of your imports, needs to be secure and one which you pay for goods that you ordered.

Some of the factors you can consider when selecting a payment option include the relationship between you and your supplier.

You can also include the risks of using the payment option, the hidden charges for using the option and the speed of using the option.

Let’s have a look at the commonly used payment options that you can choose to pay for your imports from China to Nigeria.

· Telegraphic Transfer

Telegraphic Transfer is an electronic method of making payments to your supplier or manufacturer in China.

Under this method, you have to make payments first before your supplier delivers your goods.

You need to remember that you will bear maximum risk by choosing to use this option for your payments.

The risks involved include your supplier not delivering the goods after receiving the payments.

HSBC Telegraphic Transfer

Also, they can deliver poor quality goods. Another risk to remember is that there is no recourse once you have completed the transaction.

The use of this method is, however, not common in international trade.

If you choose to use this method, be very careful.

· Western Union

You can conveniently use this method if you are conversant with your supplier. If you are a new importer, you need to refrain from the use of this payment option.

The advantage you have with this option is that you have a quick money transfer from your supplier.

However, the disadvantages of this method are many.

For instance, the charge for using western union is high.

Meaning that you will pay more for transacting via western union.

The method is also prone to scammers who may lead you to send your payments to the wrong address.

Again, with the use of this, method, you don’t have a resource path in case of anything going wrong.

· PayPal

You can use this method especially when you are ordering samples or when you are importing a relatively low volume of goods.

If you compare with Telegraphic Transfer, PayPal is more secure for you.

The disadvantage you have with this method is the high charge that it has.

You will pay a higher transaction fee for using this method.

Also, with the fluctuation in the exchange rate, you are likely to factor this to your supplier when sending the payments.

This means that you may end up paying more than the actual value of the goods.

· Alipay

A sister company to Alibaba, Alipay offers a more secure way of making payments for your goods.

This is more so if you order your goods via Alibaba.

Alipay

Under this method, there is a guarantee of the quality and quantity of goods that you order.

There is also a guarantee of your supplier of their payments.

· Escrow

You can conveniently use this payment method to pay for your imports from China to Nigeria.

Under this option, your payments are held by a third party who only releases them after you have confirmed the receivership of your goods.

Escrow

Your supplier also has a guarantee of receiving their payment since they will also provide proof of delivery before being paid.

· Letter of Credit

Perhaps the most secure method of payments when you want to import your goods from China to Nigeria.

Letter of credit

Under this method, your commercial bank undertakes to make payments for your goods once your supplier delivers them

This method is convenient to both you and your supplier.

Your supplier won’t have to worry about the payments as your commercial bank will take care of that.

You, on the other hand, won’t have to worry about the quality and quantity of goods since you can always involve your bank to delay the payments.