Different payment term in foreign trade

In foreign trade business, there will be many different payment terms existed, and different supplier & importer prefer different payment term.

In Wuhan Xinyingda Chemicals Co., Ltd.l & XYD Industry Ltd., we mostly choose TT( 100%, 50%, 30%, 25%, 20% etc.) in advance + balance against BL copy. Or LC at sight & 30 days.

Now in order to develop & enlarge our our business, then our company also accept Lc 45 days, 60 days, 90 days and for long term cooperation customers, we are also suitable for DP at sight.

Here are the short introduction of different normal payment term:

1. TT: Telegraphic transfer (or telex transfer or T/T), a method of transferring money, most normal payment term in business.

2. Letter of credit ( LC): A letter of credit is a document issued by a financial institution, or a similar party, assuring payment to a seller of goods or services provided certain documents have been presented to the bank.