Sir,
I m trying to sell my product to a party in Indonesia.I m new to exporting.I m a local manufacturer in Mumbai.
I had asked for 100% payment in advance by T/T.
But ,the party says it will pay 100 % advance but with L/C.Since,I m new to exporting I dont understand the terminology much.Also,the mode of despatch is via DHL express ,door-to-door.Is it possible to despatch in the manner as demanded by the buyer?.
Also,how safe is L/C as against T/T?
Plz reply soon as matter is urgent.

Quoting from [KZAR]:


Sir,

I m trying to sell my product to a party in Indonesia.I m new to exporting.I m a local manufacturer in Mumbai.

I had asked for 100% payment in advance by T/T.

But ,the party says it will pay 100 % advance but with L/C.Since,I m new to exporting I dont understand the terminology much.Also,the mode of despatch is via DHL express ,door-to-door.Is it possible to despatch in the manner as demanded by the buyer?.

Also,how safe is L/C as against T/T?

Plz reply soon as matter is urgent.

KZAR - If you are new to exporting as you said you are  your first step is to educate yourself to the extent that you can before you jump into a business that you  are not familiar. If you don't know the terminologies take time to learn it. Do not rush it, if not the lesson that you will learn by not being patient and not knowing what you are doing will be something that you will never forget. Here is one among several sites that can help you understand more on the different methods of payments. http://www.tradeport.org/how_to_import/import_finance.html