Quoting from [Orix International]:
Replying to [Admin]:
Most China sellers insist on TT in advance before production. What financial guarantee seller can give for refund of TT in case of shipment failure? Refund of TT thru litigation is too lenghty. Do China banks give PBG against 1005 LC at sight? This is a big concern for new buyers.
Orix International
India
Letter of credit is the suitable payment system for import/export transactions. ther you can impose conditions. But as you said getting the advance and if the shipment is delayed., or something happenening out of our control., there are many litications. so LC is the besthod payment system