i have seen that some individuals have replied to my concern about companies not willing to work with a letter of credit. i am in the electronics business and my company also deals with IT, networking. so my business requires hardware..such as laptops, pc's pda's and latest models of mobile phones. i was looking for a manufaturer or a wholeseller in china...or anywhere in the world that can give me the most competitve prices. most companies want to work with western union which does not secure me what so ever and is a big no no for doing business. they also speak about telegraphic transfers(t/t). which again does not promise me that i will actually receive a product. is there something im missing with the t/t method that they keep refering to?? hence...since they do business with t/t i can not understand what the problem for them to work with a letter of credit is...since it is a bank to bank transaction. in my opinion someone who is not willing to work with l/c has something to hide. basically not legit..

Replying to [manny123]:The l/c method of payment is, prima facie, very safe and secure . But if you go deeper into this matter, you will find that this is valid only when the one who opens the l/c is scrupulously honest. Consider the case when you have shipped the product, and encashed the l/c. The party opening the l/c however refuses to honour it. Reason? He finds fault with you, in not following every condition and clause in the l/c.You keep justifying what you have done is right. The buyer equally well claims you have not followed every clause and condition it it, and dishonours the l/c. Only solution eventually is to agree to whatever the buyer says - and sell your product for a song. This dishonourable practice is followed , I gather, even by some so-called reputed, five(or more) star institutions and also if you will please pardon me, some central monetary agencies.
To my mind, as a seller, I would always accept and also recommend the TT method of payment. NOT L/C. - Suresh Koondaje

Replying to [manny123]:

Hi, your concern is absolutely correct, and don't worry, you will find the supplier to accept Letter of Credit.

As you know China is just getting used to "international Practice' in recent decades, there are still a lot of improvements in International Trade to be required and actually for those 'advanced sense' suppliers, they will only do payment terms based on L/C rather than T.T. or Western Union bank transfer whatever, if your order to reach minimum like say : USD 20,000 and above, as it's enought to cover customs and banking negotiation fee etc..

Hoping this is helpful for you and insist your payment term by L/C to reduce your risk to the least.

Replying to [manny123]:For the sellers,they prefer to western unin and T/T,that will more convenient and secure.If the larger order,amount above 100,000$,they will consider L/C,or the L/C will be difficult to operate.On the other hand,like the sellers prefer other payment,both sellers and buyers will try best to low their risks .
This is my ideas.Thanks.

Replying to [manny123]:
Don't do business with companies who are not willing to agree with your payment terms. We buyer's must be always on guard against illegal traders and shoddy manufacturers in China. I say L/C is still the best way to go.

Replying to [manny123]:
Why don't these chinese "companies" accept ESCROW either...? Some say, it is not available in their country... Yes it is, it is available worldwide, it is a website in which they allow the safe secure transaction through escrow, and it guarantees the buyer gets their goods and the seller gets their money... Some gold suppliers and trustpass members still don't accept ESCROW it is very annoying...

Replying to [manny123]:Why not use PayPal? It is the best payment method in the world.

Replying to [manny123]:
if you already know and trust your supplier you can pay by TT it is cheaper faster way to pay the money
TT is an insurance for the su[ppliers that you will not cancell the order.
some suppliers ask 30% deposit and the rest on bill of lading.
some risk is involved , unless yiou use a third party (agency) to check up for you.

Replying to [manny123]:
Hi All,
I am new to the buyer end of this business, My son and I are in the middle of finalizing a transaction with a supplier from China... which we made contact thru this web site. Can some one define the different transactions mention in manny123 post. The supplier we are working with is requesting T/T payment, and has provided us his bank information in China. We are in the process of doing a wiring payment thru our bank. Would that be similar?

To manny123 my son & I felt comfortable in doing the transaction in this process. Our Communication with the supplier we kinda went on trusting instinct according to his replys back to us with questions that we had. But my Bank also did recommend the letter of credit in doing business this way. Appreciate your replys.

If a company only wants to use WesternUnion, to me, doesn't show much professionalism. I stay away from companies like that. There is probably a reason why they don't use banks and only western union.

Best Regards

Replying to [manny123]:Because the western union and T/T is free in China.So greatly parts of sellers for cut down expense.Decline low cost.Will adopt these method of payments.One more's order is to use the western union is very safe to seller..Want to pay very high service charge in the usage PAYPAL in China.The affairs that handles PAYPAL also does trouble.So the seller of China like mostly with the western union and T/T to be used as oneself's company to pay a way..
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