The Inside Story of a German Silicon Supplier Owing a Chinese Company Money（2）

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The Inside Story of a German Silicon Supplier Owing a Chinese Company Money, Without Any Business Reputation
(Series 2)
Dear Friends,
Currently, the frauds of some international silicon suppliers can be divided into two groups:
1.Run away with all the money prepaid by the buyer;
2.Occupy buyer’s prepaid money in a long term, which means, use the buyer’s prepaid money to deal with other business of their own; when it’s done, the supplier then return the buyer the money paid in advance.

The first one is that of cheating, which everyone knows, we don’t need to give any detailed info of it. It harms the interests of the buyers to the extreme.

The second one is that of frauds, during which the suppliers take advantage of the laws, harm the interests of the buyers indirectly. Buyers have to spend a lot of time and energy to handle the problems arising out of the long occupation of funds by the suppliers, yet get nothing back eventually. Ironically, on the contrary, the suppliers, who are the frauds, get very good reputation.

Our experience can be categorized into the second one. So when you trade with the suppliers, don’t place credit in them just because they can supply the documents they refunded the money of their previous buyers. If there appears financial problems, the cheating of the suppliers can be escalated into frauds. In the silicon industry, there’s no difference between these two. So draw some lesson from our experience, don’t believe those frauds!