Forum Moderators: LifeinAsia
If not whats the best way to keep from getting taken.
what would work is a document which outlines your procedures and payment guidelines. for example 10% deposit and the rest upon delivery.
you shouldn't even put down a deposit on the 1st job. if they are using a service like elance, you should go through it, as it will allow you to rate the company and in most cases they won't risk a poor rating.
I'm based in Europe and I have had contracts with companies in the US and the Middle-East and I never ran into problems.
Make sure you have a waterproof contract (your contract must be legal in both countries) and you can do business with people all over the globe.
your contract must be legal in both countriesI would add that you should find out in advance how to procede in the event the contract is violated.
First it depends where you are and where they are. If you/they are in North America/Europe/British Commonwealth/Japan there is little problem. I require that contract problems are arguable only in my local court's jurisdiction, but that is usual in most contracts these days anyway.
If you have to work from the client's contract - take it to a lawyer with international and export experience. Make sure you understand the worst case scenario. Better yet - work only when you supply the contract - and have that same lawyer trample it too.
If language nuances may be a problem find a local translator and figure in those costs - well worth it sometimes.
I provide (on large contracts or where requested) a Surety Bond which (unlike a Standby Letter of Credit or Letter of Guarantee) requires the buyer to prove (to the insurance company) that you are in default of the contract. This protects me and reassures the client. Banks also tend to freeze your account to cover the amount of a Letter which is another reason to stay with a Surety Bond.
On my being paid - well I get paid prior to producing anyway so that is not a problem. You may like to specify the currency of payment or preset the exchange rate. It can make quite a difference over the period of a long contract.
Canada is great to work from. EDC (Export Development Canada) provides great support for the little guy [ that's me :-) ] as well as the conglomerate.
Check out your country's support programs for exporters. And yes - web design/database/programming service from your home to Timbuktu is an export!
I have (on larger contracts) taken out Transaction Insurance which covers up to 90% of a clients default.
World Wide Web means world wide. ;-)
Good luck!
I bill 50% in advance so in the case of my ex-client who ceased all communication after paying me and I delivered a preliminary package, I was more than compensated. If the client won't pay 50% in advance, I will not bother. I have only had to sign one contract. The rest were all 50% in advance.
I am on the mailing lists of my main client and I see emails from all sorts of places wanting to set up a relationship with the client. This includes countries like Nigeria. Now there must be lots of good people there, but I just wouldn't take the risk.
Certain countries also have reciprocal legal treaties, e.g. a court judgment in the UK can be enforced in Australia even though we no longer use the Privy Council as our highest court of appeal.
If you are in the US I would stick to the US and Canada as primary markets.
International trading is a very tricky business. I'm a British Citizen, resident in the US, operating a US corporation....I would only consider UK, Aussie, & German contracts, and then only as a desparate measure, my first choice would be to stick to US and Canadian business.
I trust my now homeland and their neighbors more than my motherland and it's offspring when it comes to sound business practice!
Outside of those nations I wouldn't want to even reply to tender.
Yes....someone here is going to tell you there is money to be made from other nations (they maybe right)......but it's not for the rookie in those markets....simply too risky IMHO.
