Question 1

What is the safest payment method when importing from India?

Accepted Answer

For most B2B orders, a bank wire (telegraphic transfer or TT) with a structured payment split is the most common and practical method. You pay a small deposit (typically 30%) upfront and release the balance against shipping documents such as a bill of lading or airway bill. For larger orders, a letter of credit (LC) issued through your bank adds a layer of protection by making payment conditional on the supplier meeting documented shipping terms. Escrow or milestone payment services are another option, especially for first-time orders, though they are less widely used in Indian B2B trade. The key principle across all methods is to avoid releasing full payment before you have proof of shipment or delivery.

Question 2

What are the biggest red flags when paying an Indian supplier?

Accepted Answer

Watch out for these warning signs. A demand for 100% advance payment, especially from a supplier you have not worked with before. Bank account details that do not match the company name on invoices or the GST registration. Pressure to send money to a personal bank account rather than a registered business account. Requests to pay through informal channels, cryptocurrency, or gift cards. Frequent changes to bank details mid-transaction. And any reluctance to share verifiable business documents like a GST certificate, IEC (Import Export Code), or company registration. If something feels off, pause and verify independently before sending funds.

Question 3

How does the advance-plus-balance payment structure work?

Accepted Answer

The advance-plus-balance structure is standard in Indian B2B trade. You agree on a deposit, commonly 30% of the order value, which the supplier uses to begin production or procure raw materials. The remaining 70% is paid only after the supplier provides shipping documents proving the goods have been dispatched. These documents typically include the bill of lading, commercial invoice, and packing list. This structure protects both sides: the supplier has working capital to fulfill the order, and you retain leverage until goods are confirmed shipped. For your first order with a new supplier, consider negotiating a smaller deposit or using a letter of credit to reduce risk further.

Question 4

Is Sauda really free for buyers? How does it make money?

Accepted Answer

Yes, Sauda is completely free for buyers. There are no fees, commissions, or hidden charges on the buyer side. Sauda earns from the supplier side of the transaction. This means you get full access to its sourcing, verification, calling, and negotiation services at no cost. You simply send your requirement on WhatsApp, and Sauda finds GST-verified factories, contacts them, negotiates pricing, and returns the cheapest live quotes within 24 hours.

Question 5

How does Sauda verify Indian suppliers?

Accepted Answer

Sauda checks each supplier's GST filings and returns before presenting a quote. GST (Goods and Services Tax) registration is India's primary business tax system, and active, consistent filings are a strong indicator that a factory is legitimate, operational, and conducting real business. This verification step filters out shell companies, brokers posing as manufacturers, and inactive registrations. It does not replace your own due diligence, but it gives you a meaningful baseline of trust before you engage with a supplier or send any payment.

Question 6

Should I start with a small order when working with a new Indian supplier?

Accepted Answer

Yes, starting with a smaller trial order is one of the most effective ways to reduce payment risk. A trial order lets you evaluate product quality, communication reliability, packaging standards, and shipping timelines before committing larger sums. It also gives you a chance to test the payment process itself, confirming that bank details are consistent, invoices are professional, and the supplier delivers as promised. Once you have completed one or two successful orders, you can scale up with greater confidence. Sauda can help you source and compare quotes for trial quantities just as easily as for bulk orders.

How to Pay Indian Suppliers Safely: A Practical Guide for B2B Buyers

How Sauda gets you the cheapest quote

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