Paying a deposit for goods -- safety of?

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Silica

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I've just set up a new company, and about to order 2,000 units of a custom-made product, through an Irish company, that is being made in China.

We had expected to pay on shipping, but with currency fluctuations, the Irish company is recommending a 50% deposit now (about €5k) so as to secure the price. (The product would be made next month and delivered in July)

The Irish company seems reputable, and has already produced a similar products for other clients that I know I'll.

Being new to this, what guarantees should I look for with the deposit: fully refundable in the event of the product not arriving, or being suitable??

I'm guessing there is some standard formula of words...

and thanks for pointing me in the right direction.
 
All I have from the Irish company is a proforma invoice for the deposit.

What's the usual procedure -- would they have a standard contract, that I'd ask to see?
 
For a start you won't see it in July unless its airfreight. Don't expect it before September.

I would say that you will be paying your money and taking your chances based on what you have said here.

The Irish company are probably making a small percentage so I doubt they will be in a position to underwrite the quality.

I suggest you get some samples or place smaller orders first.
 
If the Irish company is selling the goods then they are 100% responsible for the quality. It is irrelevant where the goods are being made. Don’t pay the deposit, take your chances on the currency fluctuation and pay COD for the goods when they arrive. I buy parts in China and sell them on and I make more than a small mark-up. I buy goods from Irish companies and I’m sure that they are making more than a small mark-up. If your Irish supplier is not guaranteeing the quality and shouldering the financial risk from the Chinese supplier then they are adding nothing to the transaction other than adding a parasitic mark-up.
 
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