Do foreign trade in general what way to receive payment

Common Payment Methods

Former T/T ? Telegraphic transfer

That is, after getting the customer's order, the salesman immediately open the form of invoice (Proforma Invoice) to the customer to pay (usually a deposit, 30-50% of the total purchase price). After the customer gets the Proforma Invoice, he will make payment in his country's bank. Usually it takes 4 working days to reach the designated account. After the production of the product, notify the customer, open a pro forma invoice to the customer to play the balance.

This method can be used flexibly, but the maximum can only be: i.e., first let the customer make a deposit, and then get the bill of lading after the shipment, the copy of the bill of lading will be provided to the customer, and the balance of payment will be arranged. But the prerequisite is that the cargo belt is designated by us.

Post T/T

Post TT means that the manufacturer receives the deposit, starts production, delivers the goods after production and provides the customer with the documents. The customer receives the goods and pays the balance to the account specified by the manufacturer/supplier within a certain period of time. This operation is extremely risky. It is not suitable for use.

L/C (Letter of Credit)

L/C is a document used by the bank to guarantee that the buyer or importer has the ability to pay. The buyer first deposits the payment of goods in the bank, the bank to open a letter of credit, notify the seller's account bank in a different place to the seller, the seller according to the contract and the terms of the letter of credit shipment, the bank on behalf of the buyer to pay. The letter of credit is a fairer way of trading for both buyers and sellers.