[2008]payment problem

When RMB appreciation accelerate, have you experienced following payment problem? How you avoid or decrease exchange rate risk?
p/T0j4u_/F I have a russian customer,we have made business for about 3 years,I think they have good credit standing, but recently,we shipped one order in January,and the consignment have arrived for one month,but they havn't paid till now,we didn't release the B/L of course. I'm very very worried,have communicated with them by skype and email many times to push payment. They are big company, the staff with whom I usually communicate told me their company have too many levels directors,the decision must be passed level by level, and they have problem to pay because they have ordered too much  to arrange payment at one time. I don't know should I believe her or not.I also check with the shipping company,the B/L is Master B/L, and the consignments are unpicked up now. I one sent following mails to her,the expressions are more and more stern .A/PLC&D4`@
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Dear XXXt,jYR|J6|9}9qg
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b#u/Wg}h Pls do me a favor,pls help to push the payment for 08-JZ002(PO#XXX),the amount is $51837.46,V2D.ORj$n.J
it's been due on Feb.20.2008.

e3a;Q7W.]-M Last week,you told us your accoutant will pay "next week"(this week),but,this week,you still$l5\#Nv vSC
say you'll pay next week. I don't know what happened now.E2@9[P Ag
Your payment was due about one month ago,during the past month,the exchange rate changed from 7.1452 to 7.0882.
n+\!]F VfH5N@ Your late payment has made us lost RMB2958.
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6A-hl"c?6_1g Pls arrange payment within the week.We can't wait any longer,and we can't accept such thing in future.0[%?!T/jE

:y'[#f9XT!p1T#E Thanks&best regards#Y$V4h,}+tig
Sunny jo0[:r?.K_

6v U(x![F Q Dear xxx
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6y:_|3x;hhf Any news on payment?-M&W[F1za
The newest exchange rate is 7.0518,we lost RMB 4841.62 due to your late payment.6Z#h`0Vv4R+qq`
Pls make compensate us for this RMB4841.62.
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G {'h We must discuss with you about the payment terms for orders after xxx(the mentioned order no.).'YY5c1M8s:n(n
Look forward to your early response!
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Thanks&best regards
@znxUl-|4E Sunny J$Ue-K7V]?y/On
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Dear xxx
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Today's updates exchange rate is 7.0252,we lost RMB 6220.50 due to your late payment.
.ov:ZxVc(E We have waited too long time,without your confirmed payment plan.6bvS/w5n wa
We have no choice but to stop any production for your orders until we're get paid $51837.46 plus compensation amount RMB6220.50.
/A$o7]U^b You're responsible for any delay in shipment of xxx &xxx&xxx(we still have three orders unshipped now) due to your late payment.
l O&d9V6d4~1L+F I understand you've made lots of efforts to push the payment,pls transfer the mail to your head leaders and finance dept. Many thanks!7}2s;^ BD3Kq
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x$a{z2z^5} Best regardsyx ?LV
Sunny
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Later,I got their boss's email and telephone, I sent the following to their boss:;|&e#U6m2?0kA
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Dear xxx
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.ra1~@ F2mws1e.K:~ I'm Sunny from xxx.-aG d&Fi4S+v-Yt
Now we have a problem need your kind help.
zfV;l)y`%` We shipped your order xxx in January,2008,and the consignment has arrived your port for more than month,the payment was payable since February 20,2008.
*V&D3t,^ tk After CNY,the appreciation of RMB accelerated,from  7.1452 of Feb.20 to current 7.0252,we've lost RMB6220.50 due to your late payment. Pls make compensation for this when you make payment.9t0NY.J Y-hkM
We really can't bear the high appreciation pressure now,Pls understand our current situation,give us your confirmed payment date.Py+hus}L*@0r
Your early reply will be high appreciated!
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Thanks&best regards
FCo!r#By&C Sunny
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I got news the boss will come to office today,so if I don't get any reponse,I'll call him. lN4H5}1`"Xy&h;r6U.d
There unshipped orders are just produced partially, we have stopped the production in fear of further risks.
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Hope to get your suggestion.

come on

I think you can insist to call him,maybe this is the only way, Are you the boss ?If not ,You DQ \y
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also bear the press from the boss.Sorry ,I don't know the best way,

i'm sorry to hear that. i hav no the best way to persuade the buyer to pay for your payment. i am only praying the god to let you receive the payment asap.i hope i can get the good news one day.

Anyway, many thanks for your experience. Although he/she is your old business partner, you did well in principle. Maybe it is one important reminding for other friends. About your matter, i'm sorry i have no more good idea except keeping along with the email communication. By the way, did u get any advance?

Reply #1 sunny2005liu's post

hi,dear sunny:j
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i can understand your situation
D;L6Je I but i don't quite agree with the method that you used to push the paymentNK?%D lvjH\
in my mind.A'uJ3wZ
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please don't be impatient and be politely always
phH*Fa[q as far as i know,the rich poeple in russian is also very gentle
%W B EfY0[h i have done some business with russian people and one time we delayed a russian customer's shipment ,what is more,we even have deliveried the wrong cargoes to himNaY3lD@ b
though that customer was very angry,but he was always very polite to me
R,K ]uv!uO and i feel really sorry when i got his email in that way
y-V1a9BTW-F9p"_E^ of course,i also help him solve his problem positively
!PdJ$wcG.O WeU secondly,i am sure you will lost a lot of money'}rsk;c*v'`
but you can mention the loss of your money in some polite way?W2@,IS%DB^/S8r
you can say your profit very low and the raw material has increased a lot in china)i}3?7E:R:j.NQNy
so if your customer should conpensate some loss because  of his delayed payment
/V5I#S h.R$j4nyo(O in you email,you just keep on declaring the loss/{,`}UJ\O
when i read your email,i also feel a little unpleasantly1r(?E2JQZ%z
that is only my own opinionm S8x[3X7[BCB
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[[i] Last edited by jerry1983 at 2008-4-1 10:10 [/i]]

The customer promised to pay in 2-3 days.I feel better now.@C9{?i.G
And he plans to place a new order now.
,{,OD$FB9Z$]]F)P I told him the validity of our offer depends on whether he can pay withing the week or not.'u?+g/nft-W t
My new prices consider fully the high appreciation risks of RMB,we're negotiating now.
?l;z'LG@ I insist on original offer with strong attitude.dRO:za;R)@~
If I can get payment within this week,and get the new order,It'll be perfect winning for me.
@8caU#Cp I'll add a penalty clause on late payment in new order.

Reply #5 jerry1983's post

Jerry,thanks for your winged words,you're right. I have same feeling also.*r3iqJ\v@0F
Just too worried and angry to remember courtesy,I will adjust my expression in next mail.

A good news! I have received payment on April 2,2008,also I sent a mail to the customer)N&M5c/hH6Ym%VZ
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Dear xxxAE+pF.o\ D K
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During passed months,the raw material and exchange rate experienced sharp rise,we bore very heavy"Z/D#uK_|-_v
cost pressure,actually,we have lost much money due to unexpected cost surge,which left us without any profits.`Cu&P(C)h-a
So,we hope to discuss with you about the compensation amount.
e u,L a#i_(i Could you consider about the issue?
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l3E2w B And according to attached FULL YEAR SUPPLY CONTRACT PW2008,Your company is to be charged 1% penalty from the total amount of each invoice per week of delayed payment.
-b1VOC ` Your payment are delayed for five weeks,pls compensate us $51837.46*2%=$1036.75..yTk/Ft?\"H
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Pls consider our current cost situation,hope to get your kind support!Nm_LT|y

hc2ei{%dM$G~i#FT q Thanks&best regards!f;K mR)iB;f:C+^
Sunny
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l4A9J(p"@Vn/d$R+a"U%U } And I get a new order,I add a penalty clause in PI,"XXXX is to be charged 1% penalty from the total amount of each invoice per two week of delayed payment".
p3P,jX0i7@m:g9J In fact,the customer will have to pay high fees to pich up the consignment,sigh!Why not pay earlier?

Hope everything goes well with you!:)

for the long-standing bussines,they must ...
`/sNf7s but what a pity.
4`#silx g KY&c do they have anther partner in bussiness.if it is ture ...:L