please can somebody explain what these exactly are and how can payment be made via these methods?
i dont understand,

thanks.

Replying to [2Pac]:

If you not know the easiesf words in trade payment, how will you survive ???

T/T means Telex Transfer
L/C mean Letter of Credit

explanations you get from your Banker !

rgds
Wilhelm

Quoting from [wilhelm]:


Replying to [2Pac]:


If you not know the easiesf words in trade payment, how will you survive ???


T/T means Telex Transfer

L/C mean Letter of Credit


explanations you get from your Banker !


rgds

Wilhelm

     2Pac, Wilhelm is exactly right, but I will expand a little.  T/T is better known as a wire transfer that takes place between your bank and the suppliers bank once you have agreed to pricing and shipping terms as well as any other inspections that you put in place.  When making a T/T payment always go thru banks never send money via W/U Western Union as this is the least secure form of making a payment.  Some suppliers also accept escrow.com which is safe for both buyer and supplier provided you have your items inspected.  It is possible to be scammed in every form of payment.  Thats why knowing everything about your supplier and setting your self up to succed is so important. 

     L/C will be an expensive way to go if you are making a minimal trade deal.  As Wilhelm stated it is best that you talk to and employ the resources at your bank for opening a L/C.  I would also point out that it would be wise to open an account with a bank that has some expertise in world banking and trade as you may save your self some headaches as well as some cash.

Best regards,

Ranger

Grigoand Wilhelm thanks for dropping in on the forum.  I have been busy the past few days and appreciate the quality answers you have been leaving for the members of the forum.

Replying to [Ranger]:
ok so inorder for me to send a t/t payment do i have to get the suppleirs account info? what do i do after that?

Quoting from [2Pac]:


Replying to [Ranger]:

ok so inorder for me to send a t/t payment do i have to get the suppleirs account info? what do i do after that?

Your supplier should supply you with the name on the account the account number and the SWIFT code, this identifies the bank where the supplier holds their account.  You will need to check with your bank what the fee's will be to make the transfer to the supplier's bank, including any monetary conversion fee's.  Always check with the suppliers bank to verify all information is correct and Verify all fee's before sending payment.

Best regards,

Ranger

Replying to [2Pac]

If you are transfering money to a European you should also get their IBAN number..as this may save you expenses at your bank.

Replying to [Ranger]:


ok so do i phone up my suppliers bank in china and ask them?
but how will i know what bank they use

Quoting from [2Pac]:


Replying to [Ranger]:



ok so do i phone up my suppliers bank in china and ask them?

but how will i know what bank they use

The SWIFT code is the personal identifier of your suppliers bank.  To get information about your suppliers bank you can go to http://www.exportbureau.com/check_swift_code.html and do the search from this page.

Best regards,

Ranger

Replying to [2Pac]:sometimes T/T is not regarded to be a safe way

Replying to [2Pac]:

T/T is an unsecured term for business, unless the goods arrive prior to payment. You might receive items with technical problems, which you can no longer claim, for some cases.

L/C is more secure for both parties, but involve some charges, for our case, our bank charge the following: Bank Charges:1/8 of 1% of LC Amount + Php0.30 per every Php200.00 of LC Amount.

Avoid L/C amendment, it will cost you more. Send L/C application to your supplier for review before submitting to the bank.

I hope this helps. Good Luck.

Quoting from [jgsolo]:


Replying to [2Pac]:


T/T is an unsecured term for business, unless the goods arrive prior to payment. You might receive items with technical problems, which you can no longer claim, for some cases.


L/C is more secure for both parties, but involve some charges, for our case, our bank charge the following: Bank Charges:1/8 of 1% of LC Amount + Php0.30 per every Php200.00 of LC Amount.


Avoid L/C amendment, it will cost you more. Send L/C application to your supplier for review before submitting to the bank.


I hope this helps. Good Luck.

jgsolo, are you sure your formula isnt flawed?  Based on your formula you could then open a L/C for a total cost of 6.87 Php's for an L/C of 2500 Php's.  If they were that cheap everyone would be doing it and there would be no reason for buyers of small orders to take any risk at all.  I don't even reccommend anyone opening an L/C for less than $50k.

If you can open a confirmed L/C for that amount what does your bank charge you for payment via T/T?  I question this because I want members to have accurate information.

Best regards,

Ranger