Today topic about a question received from a closed client from China, they try to change their “buying” name from ABC shipping to ABC shipping ( Singapore ) Pte. However they found out there are more works follow by that decision.
Most of their existing traders, supplier, request them to re-do the KYC, some request them for financial documents to apply the credit again, some even ask for cash in advance as there is no payment performance / record for the “new” company. !
They feel annoyed as their office didn’t change, their fleet stay the same, the buyer is still the same for the past 15 years, why now they are being treated like some fresh new company ?
From a seller prospective, changing name is not just a “name”, as we have at least below considerations :
- New legal counterpart from finance / legal prospective
From perspective of financial department or even the bank, as long as you change the buying entity, it is a NEW company. As previous payment history and credit material are referring to the previous entity , unless there are clear evidence ( like parental guarantee ) that the 2 entities are related, the credit application might be able to skipped but the KYC must be re-filled again.
2. Why they change name ?
Although in most situation client change their buying entity probably for accounting purpose or simply consolidation for certain vessels / business in the same entity. However for salesperson / credit manager would also question – is the old entity get into trouble ? why there is requested to have future invoices bill to this new shell company ?
Therefore there are many considerations when it come to new entity for the supplier, its not just another name !
Until next time
<This is a personal blog. Any views or opinions represented in this blog are personal and belong solely to the blog owner and do not represent those of people, institutions or organizations that the owner may or may not be associated with in professional or personal capacity, unless explicitly stated. Any views or opinions are not intended to malign any religion, ethnic group, club, organization, company, or individual.
All content provided on this blog is for informational purposes only. The owner of this blog makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site. The owner will not be liable for any errors or omissions in this information nor for the availability of this information. The owner will not be liable for any losses, injuries, or damages from the display or use of this information. >
