Saturday, December 06, 2008

Why (Some) China Vendors insist on Cash

According to China Law Blog, it's because even the ones that do offer cash, don't like to pay to collect. And with the margins they/we generally make, it's little wonder why. This being said, of the firms that I have seen that do offer credit, many were built on cheap government cash (to build factories, borrowed against land, etc. coming from all levels of government) - and with export sales generally far more lucrative than domestic sales, maybe it's not so surprising why they do (though unfortunately that cheap cash availability isn't true for us).

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