Import and Export business question: Accepting payments for overseas companies?

Question

The basic idea is that their customers pay you and then you send these funds to the company that is somewhere overseas. I have seen these for companies based in China, Hong Kong, Japan and now Togo Africa. Are these scams? Identity theft scams? Or just what? I really do not see the reasoning behind these companies paying 10% to an agent to accept money from customers when the customers themselves can just send these funds directly to the company.
Anybody have any insights? Is this a legit part of the import and export business?

Answer 1

If it is too good to be true, then it is probably too good to be true.

Answer 2

This is called factoring. Although a little unusual in the import/export arena, it is very common to improve cash flow in businesses that either have long lead times between order and receipt of payment or that don't want to have to deal in collecting from their customers. The factoring company basically purchases your invoices at a discount, pays you, and collects from your customer.

An additional benefit is that you can choose when to fund the project based on currency valuations. I deal pretty extensively in South Korea, China, and Indonesia and it could mean a difference of as much as 2 or 3% to your bottom line.

Yes, it is legitimate, and yes, you must be very careful. Be sure any funds are placed in escrow or in a performance bond. Do your homework, ask for their U.S. banking partner. If they have none then ask for their bank, account number, then take a few hours to investigate the company. You can also purchase a Guaranty from a variety of sources who will guarantee the transaction...kind of like an insurance policy. Usually they cost about 1% of the deal.

The first time I used one of these types of partners I almost lost $1.1million as they simply dried up and blew away without a trace. Luckily I had a Guaranty that covered it, which initially cost me $1,000.00. Quite a deal, and quite a learning experience.

Answer 3

Most of them are scams be VERY careful. DO NOT give out any information. but ask a lot of questions. Some of the scamers will say that they are in another country, but they are really in Nigeria.

Answer 4

Yes, indeed these are scams. I myself have played with a few of them. I told them yes send me the money. Sometimes I just said, "Yes, give me money." and they sent me the very best of fake pieces of paper representing, money orders, casiers checks, and travelers checks. Some of them are so good my bank even had a hard time to distinguish the differance between the good and the bad. I supply my bank with plenty of training materials for their staff.
The Scam Artists and Excellant Counterfiters, very very good. They always want you to put this fake stuff in your bank then write a check or send some money to someone else in the US. These other people are in on the scam too and only benefit from the poor people who believe they can get something for nothing.
Don't give these people any personal information that they can use to withdraw money from your bank account. Be careful not to give them any information at all that they can use to take you money. Never under any terms give anyone your social security number over the internet. Not even if they say they are your own Mother, you do not know who they are or what they have in mind for use of your information.
Play with them if you like, let them send you a sample of their work to see for yourself just how good they can reproduce the good stuff. Take it to you bank and deposit it if you like but above all do not spend any of this money. Your bank will be thankful for the sample and they can also use it as a teaching tool for their employees. In case of a check, they will not be able to tell that it is not good by looking at it. With other things they say specifically that there is a removalble strip and that strip will not be there. Since they can not tell if the check is good or not, let them deposit it just so both you and the bank can be assured that this is not real. Tell them too that you do not know if it is real or not. But know this, IT IS NOT REAL. It may make your bank account look very good for a little while, just remember this is NOT REAL and will be deducted later when the bank finds out the check is no good. It will sometimes take a bank up to 60 days to determine that the check is no good. Put it into an account you do not use often like a christmas club account or the savings account that backs your checking. Be patient and SO NOT SPEND any of this, IT IS NOT REAL. If you spend the money or send it to someone else it comes straight from your pocket, your own account and may leave you in trouble owing the bank. My bank told me this has happened to lots of other people who have accounts at my bank alone. So many good people fall victom. It happens everyday to many unsuspecting people. They didn't take me and now they will not take you or anyone else that reads this answer! Unlike the average Joe, I am a know-it-all, a genious with bank management as one of my certifications. Due to my help and this shared information you will not be taken advanatage of and neither will anyone else reading this answer. Nice question! I have had my fun with the preditors and you can to if you like but just take care of yourself and guard your pocket!
Oh yes, unless you really want to see the fake stuff don't pay for any shipping charges they impose upon you. I got some stuff from Uganda once and because the UPS man never delivered anything from Uganda before and I knew it was some more beautifully reproduced fake money, I paid in order to show him what good counterfiters there are in the World. At that time I received 10 $500 American Express Gift Cheque's all with differant numbers and even a beautiful holographic stamp placed exactly where it should have been. The Deliverymans eyes almost bugged out of his head thinking they were real. I took one look and said, Look here it says there is a removable strip here lets see. I tore one to show him that although it looked very real there was no removable strip and it was in fact a counterfeit.
What ever you do, do it to make yourself happy. Don't worry about trying to make anyone else happy in terms of money. My Husband told me to stop playing with them but I would like to send the third party a sample of my collection so they can put it in their bank. Sounds fun but they do have my address and it could be dangerous I guess. If you want to dance the dance with them, be careful. Do not give them any information they want. Any one piece of information might just be all they need to hurt you. Just play dumb and let them know you want money thats all, they probubly already have your address like they had mine. They will comply with the very best of the fake stuff to try and take you to the cleaners. Remember the age old saying, "MONEY IS THE ROOT OF ALL EVIL" There are many people around the world today making this statement a reality.

Answer 5

99.99% of them are scams.