Working through a middleman is not always a bad idea. Often both the exporter and importer can benefit from working through a trading company. Below we have listed some characteristics of a good middleman. Cash payment for the purchased product. Often a middleman pays cash to the producer and this definitely improves the producers cash flow. A good trading company can finance the producerwith advance payments. The produceracquires extra money and the trader can benefit fromgaining a better price for the goods. A good trader takes care of all the paperwork connected to the deal. Both the buyer and seller benefit from this service. Afinancially strong trader sells the goods on credit to his buyers and pays cash to the producers. Often the buyer is not able toobtain the same credit terms directly from the producer. A good trader keeps his own stocks and can offer his buyers a wider product range than a single producer. A good trader never hides the name of the buyer and supplier from each other.Through thishe shows a good connection with both of them and expects trustful relations in each deal. If either the buyer or seller contacts the other party directly this can be the end of the cooperation, not to mention the dishonest behaviour. In case of a claim from the buyer, a good seller always compensates itwith his own funds and settles the problem with the supplier later on. If a trader sells the goods in high volumes he can usually offer a better freight and even better price compared with one time purchases from the producer. A good trader is always informed about the market situation. He provides true and honest market information for the seller and the buyer. About the Author:
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