Those days, doing business is getting harder and harder in China, and what`s worse, there`re also a lot of risks.
A boss of overseas trading told us that:
Some buyers may default the payment for even one or two years,they would only give the down payment, but no balance payment would be paid after the delivery, as a result, many trading companies owe the factories a lot, which made them close down because of insufficient fund.
A boss of factory told us that:
Recently a lot of factories closed down too , because they could not get the payment back. Since the workers could not received salaries, the factories had to shut down.
Now here`s the question:
How can we get away from the clients who likes defaulting payment?
Actually, the government has started the personal credit report system recently, if we make a complaint according to law , the government may check the personal informations of those dishonest clients for us, and their credit report will be updated to their bad records.
The credit organization will collect informations and form a blacklist, then the banks and governments will check personal credit report on bidding projects.
Once a businessman break his promises by defaulting payment and being recorded in the blacklist, he could not go abroad,buy house/car with mortgage,buy flight/train tickets,make visa, and even send his childen school. For serious situations, the court will even detain the dishonest businessman, and the bad record will be kept forever.
Bad records means: records of breaking contract,owing tax, defaulted payment, punishment of court.
Some people may ask how to use the credit system on business, the solution is:
When selecting business partners, especially for large amount business, you can check the credit reports of the candidates, or require the partner enterprise to provide its credit report, if you find bad records on the reports, you should be cautious.
Dishonest people will be expelled by the society,
so please take care of your credit!
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