Paying suppliers in China: a guide for UK importers

Your supplier may invoice in sterling, US dollars or Chinese renminbi, among other currencies. Use the currency stated in the agreed invoice rather than assuming which one is standard. Ask whether the price changes if you pay in a different currency. A lower-looking invoice total is not useful unless you compare the full sterling cost on the same basis.

Renminbi is the currency; yuan is its main unit. You may see CNY used for mainland renminbi and CNH used in discussions of offshore renminbi. Payment routes and conversion arrangements can differ. Do not treat the labels as interchangeable instructions. Ask your supplier and payment provider which currency and route the receiving account supports.

Confirm whether the beneficiary must receive an exact amount. If bank charges reduce the payment, the supplier may regard the invoice as partly unpaid. Ask who bears sending, intermediary and receiving fees, and write down the agreed position. If the supplier offers new account details to make a currency option work, verify those details separately.

Check that the beneficiary name matches the company you contracted with, or obtain a clear explanation of any difference. An invoice from one business asking for payment to an unrelated business or an individual's account deserves further checking. A familiar email thread is not proof that new bank details are genuine.

Confirm changes using a contact method you already trust, such as a telephone number established before the change. Do not rely only on a number supplied in the same message as the new instructions. Criminals can impersonate suppliers or gain access to email accounts. Urgency, secrecy or a sudden request to redirect payment are reasons to pause.

A small test payment may help check a route where your provider supports it, but it does not prove the supplier or full transaction is legitimate. Ask what checks the provider performs and what you must verify yourself. Once money has been sent, recovery may be difficult. If you suspect fraud, contact your payment provider immediately.

• Match the supplier's legal name, invoice and contract.
• Confirm the beneficiary name, account number, bank name and bank address as requested.
• Check the SWIFT/BIC or other routing information with the provider.
• Use the exact payment reference the supplier requests.
• Verify any change through an independently trusted contact.
• Keep the verification record with the invoice and payment confirmation.

A provider may ask for the invoice, purchase agreement and an explanation of what you are importing. It may also ask about the supplier, countries involved and the source of funds. This helps it understand the purpose of the payment. A request for evidence is not necessarily a sign that the transfer has failed.

Give an accurate description of the goods rather than a vague reference such as 'stock'. Make sure the amount, currency and recipient match your payment request. If you are paying a deposit, explain how it relates to the total order and when the balance is due. Separate invoices may be needed for separate purchases.

Keep company records and ownership information ready as well. A provider opening your FX account needs to understand your business, not only the current invoice. Ask for its document checklist and upload evidence through the agreed secure channel. Avoid sending unnecessary personal documents to a supplier or an unverified contact.

Compare the total sterling amount required to deliver the invoice currency, including separate charges. Take quotes close together because exchange rates move. A transfer with no visible sending fee can still have a margin in the conversion rate. Ask whether any fees could be deducted on the way and whether the quoted recipient amount is assured.

Payment timing depends on the provider, currency, route, cut-off time and completion of checks. Weekends and public holidays in the UK or China can affect processing. Do not assume that an estimated arrival time is a guarantee. Ask what happens if more information is needed after you have booked the payment.

Allow time for the supplier to identify the payment and confirm receipt before any shipment deadline. Keep the provider's transaction reference and ask how to trace a delayed payment. If the supplier says funds have not arrived, check the beneficiary details and reference with your provider rather than immediately sending a second payment.

If you have an agreed foreign-currency invoice due later, ask the provider which payment options it offers. A forward contract can fix an exchange rate for a future exchange, but it also creates a commitment and may require a deposit or extra funds. Availability and terms depend on the provider and your business.

Before discussing a forward, establish how certain the invoice amount and due date are. A delayed shipment or cancelled order can leave you with a currency contract that still needs to be settled or changed. Do not book a contract simply because you expect rates to move in your favour. Seek independent advice if you need help deciding what is appropriate.

Tell Zentra which currencies you need, where your suppliers are based and how your payments work. Our compliance professional checks the business against a provider's written requirements before a proposed introduction. Your information is shared only with a provider you have agreed to hear from, and the introduction is free for businesses.

Zentra is not an FX or payments provider, does not hold client money or give financial advice, and is not FCA-authorised. We cannot verify a supplier for you, guarantee acceptance or promise a payment will arrive by a particular date. The FCA-authorised provider makes its own decision and explains its currency services, checks, charges and payment terms.