Heat exchanger company ACP
I work for a company building flow ice machines. In some of our machines we use coaxial heat exchangers. We found a company called ACP a Brazilian company and bought from them some heat exchangers for refrigeration purposes. They turned our to be far from promiced and when we asked them for some questions they just told us "risk is only a part of the buisness". We had payed some orderes for some heat exchangers witch we canseled and we have not seen any repayment of ACP behalf. I just wanterd to let you all know so you could take care if you are planing buying from them. Is there any way to avoid this when dealing with new companies??
Re: Heat exchanger company ACP
Hi JKProSoft,
Sorry to hear about your unfortunate business deal.
Quote:
Is there any way to avoid this when dealing with new companies??
When I used to be involved in export business we always used to request an irrevocable letter of credit with some other requirements I can't remember now. It's a guaranteed form of payment.
I believe there is charge to do this with your bank, or perhaps you could insist the seller pay all bank fees.
With this payment system I think you can place certain requirements on the other party that might provide more control over the business aspects of the transaction.
Perhaps a requirement could be performance based? If the heat exchangers don't work, the manufacturer does not get paid.
If the manufacturer does not like these terms, that might tell you enough information to bypass them.
Quote:
..."risk is only a part of the business".
That is a terrible excuse for international business practice on their part.
Re: Heat exchanger company ACP
Hi JKProSoft
Be careful in the international trade. There're many unpredicted issues. I think you should make Letter of Credit as the way of payment not direct to the manufacturer. It's too risky. I believe your guys know this.
best regards
LC
Re: Heat exchanger company ACP
Quote:
Originally Posted by JKProSoft
Is there any way to avoid this when dealing with new companies??
Start with dealing in the EU. We have norms, regulations, laws and especially know how.
Secondly do not advance payments to developing countries or depressed economies, especially when testing new equipments.
Third, if they want to deal with you, they will be glad to send a sample or two of their products. If you find the goods to be as promised, pay them and start dealing slowly. Monitor supplies as they progress. If quality degrades, require prompt restore or refuse acceptance of new goods until a satisfactory new quality plan is established.
Finally, do not believe in magically cheap products from far countries.
Re: Heat exchanger company ACP
Hi Guyes
Thank you very much for your advice. I will keep your remarks in mind in the future.
Re: Heat exchanger company ACP
Quote:
Originally Posted by JKProSoft
Hi Guyes
Thank you very much for your advice. I will keep your remarks in mind in the future.
I personally would phone the company daily until they refund your money.
If you keep the pressure up someone will pay up, it will be less hassle for them than you phoning everday.
Find out who the directors are, phone them email them and send them letters, that usually gets results:)
You could also hire a solicitor in that country, but that costs money:(
Kind Regards Andy:)
