WAYS TO REDUCE THE RISK OF LOSING MONEY IN INTERNATIONAL BUSINESS (PART 1#)

Some importers are quite frustrated: the product samples they receive are beautiful, but when the full shipment arrives and they open the container, they are sometimes extremely disappointed. So how can you reduce this risk?
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  1. Assess the professionalism of the salesperson/exporter
  • How well do they understand the product? Do they explain it in detail, or just focus on the price and avoid specifics?
  • How do they work? Do they respond promptly when you ask questions, or do you have to wait a long time? Are their answers logical, to the point, and problem-solving, or vague and evasive?
  • Reputation: Have they sold to other companies? (You can check this through their B/Ls – Bills of Lading).

Experiences: Don’t just go by what the seller says. Look at their sales history — do they already have a brand on the market? How do they work with you?

Read the information on their website. (If an exporter doesn’t have a website or a verifiable address, it’s risky to work with them — unless you know them well or have worked with them before.)

Check their activity on social media platforms.

Ask them for 1–2 customer references and call those customers directly to verify.

→ If the salesperson is responsive, honest, and highly knowledgeable about the product, you’ve already reduced a large portion of your risk, because they will be able to help you manage the export side effectively.

  1. Start with small orders to test their working style.
    Sometimes everything sounds good in words, but you only see their true working style during the actual process — whether they support you well or not, and what the product quality is like when it arrives.
    → If the first order goes well, then continue. Don’t place large orders on the first deal — the risk is too high.
  2. If possible, visit the factory and meet the seller in person.
    Visiting the factory helps you better understand product quality and the professionalism of the exporter. People can lie, but physical products and data are harder to fake.
  3. If you have contacts in the importing country, ask them to help verify some information about the seller.

Note: If you are still inexperienced in sourcing and importing, it’s better to buy locally or find someone knowledgeable and trustworthy to support you — or hire a professional.
Some customers we’ve worked with lack even basic knowledge. They suggest not placing a deposit and want to pay via DP (Documents against Payment) as a “temporary solution”, but when asked about deeper risks, they brush it off — even though they themselves don’t understand the full risks they may face or how to mitigate them.

You need to understand that the standard international payment term is 30% deposit and 70% against copy documents.
If an exporter accepts a different term, it’s either because:

  1. They have thoroughly calculated the risk and have a solution.
  2. They lack knowledge and agree out of desperation to get a customer.
    → You’ll be limited in how many suppliers are willing to accept DP terms.

Even if you do manage to find an exporter willing to accept DP, the risks still exist. You also have to pay the seller before the container is opened — some require 50% to 80% upfront.
If the goods are of poor quality, the money has already been paid. And if the seller is not reputable, they may refuse to support or resolve the issue.
That’s why choosing a trustworthy partner is absolutely critical.

Picture of Nguyễn Huỳnh Nhân

Nguyễn Huỳnh Nhân

Tôi là Nguyễn Huỳnh Nhân – Giám đốc tài chính tại Kế toán MK, với hơn 15 năm kinh nghiệm trong kiểm toán, kế toán và quản trị rủi ro tại các tập đoàn đa quốc gia. Tôi chia sẻ kiến thức thực tiễn về thuế, pháp lý và tài chính doanh nghiệp nhằm hỗ trợ cộng đồng kinh doanh Việt

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