In the West, a corporate purchase is normally initiated by issuing a purchase order. What is the common purchase procedure practiced in local Hong Kong companies?
Purchase orders are more likely a practice of Multi-National Corporations (MNCs) operating in Hong Kong.
Issuing purchase orders is not a customary practice of local Hong Kong companies. In Hong Kong, a deal is normally confirmed by signing back its quotation.
The concept of commitment is loose in Hong Kong. In general, the mutual understanding is before a product is delivered, the transaction can be cancelled without charge unless a cancellation penalty is mutually agreed beforehand.
This Credit Insight is an extract from the book Happy Customers Faster Cash, Hong Kong Edition and on sale at Amazon.
A guide to effective communication in financial Customer Relationship Management with a focus on compliance and credit management for Hong Kong companies. A chapter is dedicated to discussing various aspects of Hong Kong company credit reports.
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Alexander has over 25 years of experience in Business Information Management and Information Technology. Previously, he has held leadership positions in the world’s leading Business Information providers, including Managing Director of Thomson Reuters Asia, and General Manager of Dun & Bradstreet (D&B), Hong Kong and Taiwan. In addition, he personally managed Hong Kong's Commercial Credit Bureau while working with D&B, and the Consumer Credit Bureau through his directorship at TransUnion Limited.