My situation is as following:
I have a retail business and for this i actively import large quantities of goods from China.
At the same time i have a large amount of cryptocurrency with no source of funds.
I was thinking about this:
Lets say i want to import 1000 units of product X for a total of $50k - normally the supplier would invoice me $50k directly.
I could tell the supplier to split the invoice in 2 payments, where on invoice 1 the supplier will note 1000 units at the price of $30k. And then i get an invoicing company to pay invoice 2 for the other $20k - that i will fund with my crypto.
This way i will get rid of my crypto, and my business will gain significant more profit due to the lowered price of the initial payment. The second invoice wont be invoiced to my company but someone else's company.
Is this something that could work long term or is this too good to be true and there will be problems later down the line?
(1) First things first: I'm assuming that your crypto is LEGIT, meaning it was NOT derived from a crime (especially Mala in Se). Read here:
Re-introduce crypto gains to brick and mortar fiat bank
You also need to observe ALL your local laws, that apply to your business...if any.
(2) Second, read this:
Tether founder Brock Pierce defaults, loses hotel, sues partner
(3) Third, there are thousands of methods for doing this, but your method works too. Many people have used it successfully and continue to do so. It works just fine. Just make sure that your crypto wallet is NOT linked IRL to you. For example, don't go onto e.g. Binance, and from that crypto wallet convert ANYTHING to FIAT on your KYCed account.
That crypto wallet/address (I had guys who imported a wallet and started using it personally - I can't start to express my disappointment with them). is forever for your Chinese suppliers.
Think of it as a bridge. Don't build bridges with you or anyone else! I mean, euphemistically, a bridge like the one below!
The bridge is between 1 Chinese supplier and the crypto wallet/address. It's a one-to-one relationship!
I don't know if you work with databases or spreadsheets, but it's like this:
Source:
Video: Create one-to-one relationships - Microsoft Support.
(4)
The second invoice wont be invoiced to my company but someone else's company.
Why? Are you collecting witnesses against you to help your opponents/enemies? Would you bring potential girlfriends into your marital home with your jealous wife there and risk at least 50% of your net worth???? Of course, you won't! This is an absolutely bad idea! Horrible idea! Scrap this.
(5)
I could tell the supplier to split the invoice in 2 payments, where on invoice 1 the supplier will note 1000 units at the price of $30k. And then i get an invoicing company to pay invoice 2 for the other $20k - that i will fund with my
crypto.
This way will work, but there are much better ways.
If you are in one of the Mentor Groups and it's valid, I'll guide you step by step. No charge! None! Of course, I mean like 15 minutes a week, assuming you are prepared and send me your concerns beforehand. Lest I be misunderstood and to put any concerns to rest, I don't want to know your name, your country, your supplier, how much money you are sending, or receiving, your net worth, or even what you sell or buy. I simply will tell you how I do it and from THAT you need to extrapolate the best method that applies to YOUR scenario.
Example: The way I tape my boxes (in the spirit of simplicity here so disregarding weight) is the length of the box in cm + 8 cm overhang on each side. So, a 30 cm box, would require (2 * 30cm) + (4 * 8cm) = 92 cm of tape. I don't need your name, the contents of the box, its destination, how you paid, the supplier, or anything else. You need to then figure out, and extrapolate, if you have a box with a length of 45 cm, how much tape you will need. Get it?
(6)
Is this something that could work long term or is this too good to be true and there will be problems later down the line?
I can tell you that in Zug, as long as I pay the required taxes on my profit, nobody cares. YMMV.
(7)
If your Chinese supplier is happy to receive
crypto there are no problems.
#Bingo! 100% correct! I can't stress this enough!
(8)
Then they would be left with the undeclared crypto - with no source of funds
China doesn't care! China gets 25% of the profit. The banks in China do care due to banking international oversight (read Western interference), but suppliers are compelled to exchange their cryptos for ¥ and receive them on their WeChat Pay or Alipay. A few years ago, I was also shocked China didn't give a flying Fvck. See my convo on WeChat with one of my suppliers. I added the link in #2. NGL, when I first heard China declared all cryptocurrency-related transactions illegal, I almost had a stroke, but then later I came to understand that mainlanders are NOT allowed to keep crypto or transact crypto with each other. It didn't apply to buyers like me who want to purchase supplies from Chinese suppliers and export the products overseas. There are a few other exceptions too, but I rather stay on topic.
they do have SOF. They sold you stuff.
Brilliant observation!
Reminds me of when an associate went in front of a Grand Jury in the '90s for buying things too cheap and took a walk with them through an end-of-season sale at Burdines! Nobody asked Burdines about the provenance of their products that were discounted 90% off the original price or why such a cheap price. The grand jury was disbanded right after that since most of the GJ members also bought products at Burdines without asking *the question*, including the prosecutor's wife
