T/T payment or L/C payment? Placing a deposit can be unsafe with new providers?

I have been in different situation, and I can say that when you give deposit to the factories, they feel more free in acting the way they want.

When doing 100% L/C at sight, they usually get in a hurry to finish fast and catch the delivery date and latest date of shipment. But when you present CASH, most of them present problems that incurr in delaying the order few days or maybe weeks.

This is one reason I prefer to do L/C even with my old providers. Comments are welcome!

Quoting from [MikePTY-HK]:


T/T payment or L/C payment? Placing a deposit can be unsafe with new providers?


I have been in different situation, and I can say that when you give deposit to the factories, they feel more free in acting the way they want.


When doing 100% L/C at sight, they usually get in a hurry to finish fast and catch the delivery date and latest date of shipment. But when you present CASH, most of them present problems that incurr in delaying the order few days or maybe weeks.


This is one reason I prefer to do L/C even with my old providers. Comments are welcome!

Mike, I agree with everything you said to a point.  100% T/T EXW or FAS is extremely safe if you are doing fly and buy.  If you are sitting in another country from your supplier and you have not checked out the company and followed thru with your inspections for qualifying a new supplier it can be very risky.  But the same holds true for an L/C if you omit any step in the terms.  You have stated that you use L/C so I would imagine you know all the steps to cover your self in a transaction, however new traders opening the an L/C for the first time can be taken for an expensive ride if they have no idea what should be included in the terms of the L/C.  The point about L/C's that IM trying to make is that all banks are not created equal.  They may have the departments to open the L/C document but may not have the expertise to guide them as to the required terms to protect the buyer.  Anyone new opening an L/C needs to do the research either within the resources of Alibaba this discussion board or from an alternate source before opening the document.

Thanks for your post Mike.

best regards,

Ranger

Replying to [MikePTY-HK]:

Yeah. Can't agree with you more.

Most Chinese factories always find kinds of excuses to delay the shipment once they have received your deposit. However, if the payment term is L/C, they will try utmost to fulfill the responsibilities and deliver the goods on time.

Replying to [cbeebies]: it's also depend on which kind of factory do you choose .usually big factory have good reputaion can guarantee quality and delivery time ,but price high .if buyers always choose cheapest price ,the quality no guarantee ,also delivery time .A Chinese old word say One penny ,worth one penny quality.

Replying to [MikePTY-HK]: Yes. Even we have faced problem in forwarding advance to fresh buyer and later solving problem if the quality is not as expected.

L/c is still much safer to do business.

Replying to [MikePTY-HK]:L/C is more safe

Replying to [MikePTY-HK]:

Hi to everybody,

Yes, you are perfect rights in all what you are saying.

My last (and first) experience here on alibaba website with one Chinese Company (FUJIYAMA TECH.CO.,LIMITED
), Harm me serious.

It is a big risk to pay thro' Western Union in China /// from now on i think anywhere, out of family or best friend/s.

I get from china company (FUJIYAMA TECH.CO.,LIMITED) very bat experience.
I make and paid one order ($825 thro? W.U.)- Samples: 4 different Mobile Phone and 2 different MP3 (one missing at all), to see how is their goods - and i received something else less than my request and out of this one of them it's only in China Language which i can not used at all (+ can not be charge), one it's very old/ from 2000 and not good working.- I think second-hand, and third one has no blue tooth, as per my request and payment.
So, in this situation, who is going to protect me against such company which from first step it's cheating me;
Please, let me know, if someone hear me ?voice?.
I can prove all what I am saying; I have my order & invoice from them, I have keeping all my conversation here in this website with this company before and after receiving my package; After I saw and told them, they simple answer to me: SORRY!
- What means SORRY? You feel SORRY with my money? How is allowing you to do this type of commerce? ? ONLY ALIBABA ? which it?s blind at such commerce
- WHY???
- I need help; it?s somebody from ALIBABA SITE to hear me?


I know it is cleverness from all how is taking lesson from such international trade.
Be careful if you - by mistake ? will want to buy from FUJIYAMA TECH.CO.,LIMITED

BE CAREFULL!


I WILL BE VERY HAPPY IF SOMEONE FROM ALIBABA WILL LOOK FOR THIS SUBJECT AND TRY TO FIND A SOLUTION!

Why website-master is not putting in front of each one a feedback - to let other people to know how is that company/person in business relation??????????????

I am sure when each one will see this condition will try to do the best job to satisfy his customer in order to be on market; otherwise will be out; each one will avoid to make deal with him/company.

In the end i implore the Webmaster to do this in order to protect all the companies/buyers and not only.

I hope that someone will read my message and do something good in this site for future, in order to grow up the trade market with Asia

Thanks & regards
Camy

Replying to [Camy]:hi,Camy ! i am sorry to hear your statement ! I think the best way is to keep an eye and increase your perseption about supplier ,As we know that Customer is god ,we our supplier should make our client satisfactory ! Otherwise ,I can't stand a post in the maket ! I can understand you mood today ! No one don't like cheating by others especilly for their money and energy ! So please be cautious when you plan to get the samples from your supplier !
Have a nice day ! It's Just my opinion !

Replying to [MikePTY-HK]:I think not all.That depend on the Honor of the provider..