Do you need to buy new or used machinery for your business? If yes, then you can consider buying the machinery from abroad. You can either buy from heavy equipment wholesalers or manufacturers who produce a wide variety of machines. Based on your understanding and knowledge of the import-export market, you can make a profitable deal.
Here are 5 tips for buying machines from abroad.
- Choose a Trustworthy Partner
There is a good chance that you might be exposed to scams or unreliable deals when you try to purchase the machinery on your own. It would be a better idea to look for a trustworthy partner who has a good reputation. Their agents stay in touch with the seller, deal with all the negotiations and help you close the deal at the best possible price.
After the sale, comes the step of shipping the machinery from the seller’s warehouse. The right shipping provider can help you reduce shipping and delivery costs significantly. It is important to consider all the shipping options that are available before making the final decision. Don’t just look at the closest ports — rather expand the search. Consider loading/unloading points within a broader range to reduce shipping costs.
- Insure the Machine
One critical thing to consider while buying machines from abroad is its insurance. You must insure the machinery as it can save you from heavy expenses in the future. Machines can get damaged during the shipping or while operating, whose repairs can burn a hole in your pocket. By taking insurance, you can minimise such expenses. When you take an insurance on the machine, it is important to check if it covers the shipping process together with the time frame when the machine will be in operation again.
- Consider Exchange Rate Fluctuations
As an importer, one of the risks to look out for includes exchange rate fluctuations. You would probably buy the goods that are priced in a foreign currency, which means that the fluctuation in the exchange rate could affect the final buying amount. The fluctuation could either work in your favour or against it. You can deal with it by transferring the risk to the supplier by requesting the quote in their currency, or by purchasing a forward cover to protect you from any currency fluctuation, or adding an exchange rate risk to your margins and carry the risk yourself.
- Understand Trading Terms and Customs Requirements
It is extremely crucial to understand the trading terms used by the exporters and importers. Both the parties should be on the same page before the purchase. Apart from that, you must be aware of the numerous custom requirements before you start to import. Take assistance of a freight forwarder or customs broker to help you with customs entry of declaration paperwork.
If you focus just on buying or selling machinery locally, you would be limiting yourself to a fraction out of a variety of global opportunities. Therefore, expand your search globally but ensure you have a trusted partner like Ezytrader on your side. Before buying machines from abroad, check out ezytrader.in.