Replying to [Admin]:

My dear Admin, I am disappointed. I did not expect this question from the Admin of this forum. All my efforts appear to have been useless. I have said it once, and I have said this again and again...the two are DIFFERENT things altogether.

- You cannot compare TT with LC. It's like comparing apples with oranges.

- TT is a mode of payment or fund transfer, WHATEVER THE REASON. The choice can only be between TT and cash and direct credit to a bank account and cheque and bank draft and mail transfer and international payment order and SWIFT and RTGS and (so on and on and on and ...)

- LC is a CONDITIONAL UNDERTAKING or promise (by a bank) to pay. I can't pay you for goods purchased, send money to you or you to me by using an LC! I have to use TT or a cheque or a ....or any of the foregoing!

Oh when. WHEN... will the difference be clear to all....WHEN....!

Hi Catalyst

, Thank you for your feedback. Our Purpose is to make Greenhands in our forum know more about T/T and L/C. Though We Couldn't tell which one is better, but we can make clear in which case we use T/T and in wihch case we use L/C.

Replying to [Admin]:

TT is better due to reasons as below:-
1) lower bank charges
2) easy documentation
3) faster getting money in bank. Sometimes LC payment only receive around 3-4weeks after ship out the goods.
4) too many terms and regulation for LC shipment

Nevertheless, doing TT need to get trust between buyer and supplier

Replying to [Winter Sonata]:

you got the point....lol....

Replying to [Admin]:I prefer LC, because I feel this is the safest method for both sellers as well as buyers

Replying to Catalyst:

Replying to [Admin]:Dear Sir,
In international Trade time is essential.T/T method is quick and in this Internet transaction though thereis a risk identity theft. But there are very good website we can trasfer money through secured method of Payment. The SWIFT protocol is one of the secured method
Thanks
V.Ramakrishnan

Replying to [Admin]:
I gotta agree with Catalyst and Aussie.

Whether I use a TT or an LC is wholly dependant on the circumstances. Asking me to choose one or the other just doesn't work for me.....

Replying to [Winter Sonata]:



I agree!

T/T also will cost much bank charge,but comparing to the LC ,TT is short time(at most 1week) and easy deal both of buyer and seller!But L/C is long time(at least 1month) and complex approval by bank and buyer,so much paper work between bank,buyer and seller.Most important is some buyer is not enough faith,after recieve the goods upon the good relationship with bank ,they will refuse to pay to the seller.Many factory in Zhejiang of China met this kind of buyer !!

Replying to [Admin]:

Dear Admin,

This forum is to clear doubts, add to knowledge. I expect people like Admin to lead the way. Asking a question which is basically incorrect, only adds to the confusion and perpetuates ignorance. (No offence.)

The difference between the two has already been explained in my reply here, and in my article in this forum.

The questions should preferably be like:
(1) Which mode do you prefer to remit funds: TT, draft, cheque, SWIFT, EFT, direct credit to account etc.? (these are comparable)

(2) For settlement of payment in a trade transactiion, would you prefer D/A, D/P, sight LC, usance LC, BG, DPC, confirmed LC, Standby Credit, etc.?

Incidentally, the comparisons and relative merits of these options (in Q.2 above) are also available in this forum itself. For example, there is a long debate about whether a new party should pay by D/P or sight LC.

The forum is already rich with info on many issues relevant to exporters and importers. One only has to look.