I run an entertainment and events mgt business in Malaysia. Although my company is home-based / very small, recently many local clients have been recommending us to their overseas clients (end-users or event companies). I am very happy about this but it is a dilemma to deal with overseas cos. esp. when it comes to payment. We usually ask for 50% deposit and 50% balance to be paid by cash immediately after the event. This is stated in our contract but some clients have violated the contract (by paying only when they return to their country and some don't pay full!). Recently when another overseas client said they'll only pay after the event when they return to their country, I withdrew my contract. Finally they agreed to my terms and conditions and they did pay me cash after the event. My dilemma is that they are returning and have asked me again if they can pay AFTER the event! I foresee that as I have more overseas dealings, I will be constantly facing such problems. Help!
2006-06-21 04:48:22 · 5 answers · asked by Clarice B 1 in Business & Finance ➔ Small Business
I deal with overseas customers daily. Prior to shipping an order, it is either pre paid with a credit card or wire transferred. I only accept either full payment or at least what I will be out (my cost of goods plus shipping etc.) should the deal go south. Establish your policy up front. Do not deviate. There are more customers out there who will do it your way. Business is business and business relationships work best when both parties understand.
2006-06-21 05:32:17 · answer #1 · answered by sportsmed@sbcglobal.net 1 · 0⤊ 0⤋
Is it easy for you to establish the merchant account to accept credit cards?
Draw up an agreement where the client agrees to pay 50% of the remaining sum after the event is over, and have their credit card numbers and signature attached to it. After the event is over, promptly charge their credit card for the required amount.
Otherwise you might switch to 90% pre-payment policy to minimize your losses. After all, you're not running a charity.
2006-06-21 04:52:51 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Once the event is over, there's no incentive for them to pay. For overseas clients - get the money wire-transferred ahead of time, or get a letter of credit (from their bank) that you can take to yours.
2006-06-21 04:52:10 · answer #3 · answered by Allen 3 · 0⤊ 0⤋
You probably will have this problem until you can set up an office or agent in the country(s) in which you provide your services, and even that won't eliminate the matter entirely.
I don't think that's what you wanted to hear, but it is essentially the truth.
2006-06-21 05:01:10 · answer #4 · answered by Joey 3 · 0⤊ 0⤋
No more or less than any other client. Get a credit report!
2006-07-02 02:49:20 · answer #5 · answered by Anonymous · 0⤊ 0⤋