The deposit, safely
Against the pro forma, to the company account named on it, by transfer or letter of credit. Never anywhere else.
A company accountA bank transfer
Pay against the pro forma, to the bank account in the mill's own registered company name, on the mill's own letterhead. Nowhere else, whatever the reason given.
A bank transfer to a company account is the ordinary route. A letter of credit costs more and takes longer, and in exchange the bank releases the money only against the documents you specified, which on a first order with an unfamiliar mill can be worth the cost. Decide which one before you place the order rather than after, because a letter of credit changes the mill's own cash position and sometimes its price.
The commonest fraud in this trade, and how to end it in one call. An email arrives, apparently from your supplier, saying the bank account has changed. It is almost never true. Never act on changed bank details from an email. Telephone the mill on the number you already had, not one in the message, and confirm with a person you have spoken to before. This costs two minutes and it is the single highest value control in this entire guide.
We never take your money, hold it, or stand between you and the mill. You pay the mill directly, and the mill pays our fee only once it has shipped and been paid. There is nothing to pay to send an enquiry.
What a bad answer looks like: “our bank is changing its systems, pay this account this once”, or any reason for a new account that arrives by email or a message app and that nobody at the mill will confirm by voice on the number you already had.
Tools for this step
- Cost of payment terms
Put the deposit, the days and your own borrowing rate in and read what the term costs you in interest, so two quotes on two different terms compare on one line.
Every tool for this guide, grouped by what you are trying to do, is on the tools page.