Introduction
When you buy a used CAT excavator from an independent exporter like Anhui Gangya Construction Machinery Co., Ltd., you need clear payment terms. This FAQ explains the common methods, typical deposit percentages, and how to protect your funds. We stock specific units, such as a 2022 CAT 308E2 with 800 hours at $21,000 FOB, and a 2011 CAT 320DIMPORT with 8,000 hours at $15,000 FOB. Below are direct answers to help you plan your purchase.
What payment methods do you accept for international buyers?
We accept three main methods: wire transfer (T/T), letter of credit (L/C), and escrow services. For wire transfer, payment is made directly to our company bank account in China. For L/C, we work with your bank to issue an irrevocable letter of credit at sight. Escrow is available through third-party services for buyers who want extra protection. Each method has different fees and timelines. We do not accept credit cards or PayPal for large equipment purchases due to transaction limits and chargeback risks. All payments are in USD.
How much deposit is required to reserve a machine?
A deposit of 30% of the FOB price is standard to reserve a specific unit. For example, on a 2025 CAT 307.5 priced at $26,000 FOB, the deposit would be $7,800. This deposit takes the machine off the market and allows us to prepare export documents. The remaining 70% is due before shipment. For units under $20,000, such as the 2025 CAT 307E2 at $17,000 FOB, we may accept a 50% deposit with the balance before loading. Deposits are non-refundable once we start customs clearance, as we incur costs immediately.
What are the payment terms for repeat buyers?
Repeat buyers with a history of successful transactions may qualify for more flexible terms. After two completed purchases, we can offer a 20% deposit with the balance due 15 days after bill of lading date. This gives you time to inspect the machine upon arrival. We may also accept a stand-by letter of credit for regular orders. However, each request is evaluated case by case. We do not offer open account terms. Our goal is to balance trust with the reality of exporting high-value equipment from China.
Can I use a letter of credit (L/C)?
Yes, we accept irrevocable L/C at sight issued by a reputable bank. The L/C must be confirmed by a Chinese bank and cover the full FOB amount. For a 2022 CAT 308E2 at $21,000 FOB, the L/C would be for that amount. We require the L/C to be opened within 7 days of order confirmation. All banking charges outside China are for the buyer's account. L/C terms must match our proforma invoice exactly, including machine model, year, hours, and price. We do not accept L/C with soft clauses or unusual conditions.
What documents do I need to provide for payment?
To process payment, we need your company name, address, and bank details for the refund if applicable. For wire transfers, we require a copy of your company registration and a signed proforma invoice. For L/C, we need the draft L/C for review before issuance. We also ask for your tax ID or import license number for customs purposes. All documents should be in English or accompanied by a translation. We do not require personal identification for the payment itself, but shipping documents will name the consignee you specify.
How do I protect my payment from fraud?
Use escrow or L/C for first-time transactions. With escrow, funds are released only after you confirm the machine is loaded and documents are provided. We also provide a start-up video, photos, and an inspection report of the actual machine before shipment. For wire transfers, we recommend using a bank that offers trade services. Never send payment to a personal account. Our company bank account is in the name of Anhui Gangya Construction Machinery Co., Ltd. You can verify our business license and export license. We have no affiliation with Caterpillar Inc. or its dealer network.
What are the typical bank charges for international payments?
Bank charges vary by method and bank. For wire transfers, sender fees are typically $30–$50, and intermediary bank fees may be $20–$40. The receiving bank in China may charge $10–$20. For L/C, expect issuance fees of 0.1%–0.5% of the L/C value, plus advising and negotiation fees. For a $21,000 L/C, total bank charges could be $100–$200. Escrow fees are usually 1%–2% of the transaction value. These charges are separate from the machine price. We do not absorb bank charges unless agreed in writing.
When is the balance payment due?
The balance payment is due before shipment, typically within 5–7 business days after we send you the pre-shipment inspection report and photos. For wire transfer, we require the balance to clear in our account before we release the machine to the port. For L/C, the balance is drawn under the L/C upon presentation of shipping documents. If you delay payment, storage fees at our yard may apply. We will not ship until full payment is received. This protects both parties and ensures a smooth export process.
Can I pay in a currency other than USD?
We prefer USD for all transactions. However, we can accept EUR or CNY if agreed in advance. The exchange rate will be based on the bank's rate on the day of payment. For EUR, we may require a currency adjustment clause in the contract. For CNY, we can accept payment to our RMB account, but this is only for buyers who have a Chinese trading entity. Most international buyers use USD. All prices on our listings, such as the $15,000 FOB for the 2011 CAT 320DIMPORT, are in USD.
What happens if I need to cancel after paying a deposit?
If you cancel before we start customs clearance, we may refund the deposit minus any bank fees and administrative costs. Once customs clearance begins or the machine is loaded, the deposit is non-refundable. For L/C, cancellation requires the agreement of both banks and may incur fees. We recommend confirming all details before paying a deposit. If you cancel due to a valid reason, such as a failed inspection, we will work with you to find a replacement unit or refund the deposit in full. We are transparent about our cancellation policy in the proforma invoice.
How do I verify the machine before paying the balance?
Before the balance is due, we provide a start-up video, detailed photos, and an inspection report of the actual machine. You can also hire a third-party inspector in China to visit our yard. For a 2025 CAT 307.5 with 500 hours, we can show the meter reading and engine start. We encourage you to review these materials carefully. If the machine does not match the description, you can request adjustments or cancel before the balance payment. We do not release the machine until you confirm satisfaction with the pre-shipment inspection.
What are the steps from deposit to shipment?
- You confirm the machine and sign the proforma invoice. 2. You pay the 30% deposit. 3. We prepare export documents and send you a pre-shipment inspection report. 4. You pay the balance. 5. We load the machine and provide the bill of lading. 6. You receive the documents and clear customs at your port. This process typically takes 10–15 business days after deposit. For L/C, add 5–7 days for bank processing. We keep you updated at each step. Our goal is to make the payment process as predictable as possible.