Most Chinse shy away from L/C mode of payment when entering negotiations and insist on T/T mode
Is it ignorence? Is itFear Of Unknown or plain lack of Confidence?
Or they can not meet deadlines of delivery inherent in L/C terms? Feb 16, 2007 Dear Friends, To-day , eleven months after I post this topic, i can feel proud that a large number of members have put forward their views, some of which are really thought provoking. Let us now start thinking and suggesting what are ways and alternatives to this trade barrier of sorts, so that more trade is encouraged and everyone feels secure. Sixer

Replying to [yarenimex]:we can
we from auto led light in china

Replying to [sixer]:THAT IS COUTURE I THINK

WHAT DO YOU THINK .? IF IN THE BEGAINING ,WE USE THE WESTERN UNION ,NOW WE WILL USE IT ALL THE TIME

Please, can someone explain here what is the term T/T ? There are 20 replies here making reference to this term but do not know what it means .

 

THIS TOPIC TRANSFERRED FROM "INSURANCE AND TRADE TERMS" FORUM.

AUSSIE

Replying to [JoseChemical]:

TT simply is the short form of Telegraphic Transfer. It is a mode of transfer of funds, and the fastest, like transfer through internet banking. Can be compared with payment by cheque, bank draft, direct credit to account of receiver, mail transfer etc.

TT has become a generic term which nowadays - it includes all transfer of funds by electronic means, inlcuding through SWIFT.

Dear  Sir


I am a dealer of computer parts in India.

I am a Beignner in Exporting. As a Buyer I am afraid to get  product  against T/T.

Is there any way out so that chinese seller get there payment through T/T and as a Buyer we are also assured for our paid Money and quality goods.

LIke if they can provide us Bank Gaurantee for our Money they received through T/T. Is there any terms available in Banks against T/T.


Regards








Quoting from [sixer]:


Most Chinse shy away from L/C mode of payment when entering negotiations and insist on T/T mode

Is it ignorence? Is itFear Of Unknown or plain lack of Confidence?

Or they can not meet deadlines of delivery inherent in L/C terms? Feb 16, 2007 Dear Friends, To-day , eleven months after I post this topic, i can feel proud that a large number of members have put forward their views, some of which are really thought provoking. Let us now start thinking and suggesting what are ways and alternatives to this trade barrier of sorts, so that more trade is encouraged and everyone feels secure. Sixer

Quoting from [fineinfotech]:

Dear  Sir



I am a dealer of computer parts in India.


I am a Beignner in Exporting. As a Buyer I am afraid to get  product  against T/T.


Is there any way out so that chinese seller get there payment through T/T and as a Buyer we are also assured for our paid Money and quality goods.


LIke if they can provide us Bank Gaurantee for our Money they received through T/T. Is there any terms available in Banks against T/T.



Regards









Quoting from [sixer]:



Most Chinse shy away from L/C mode of payment when entering negotiations and insist on T/T mode


Is it ignorence? Is itFear Of Unknown or plain lack of Confidence?


Or they can not meet deadlines of delivery inherent in L/C terms? Feb 16, 2007 Dear Friends, To-day , eleven months after I post this topic, i can feel proud that a large number of members have put forward their views, some of which are really thought provoking. Let us now start thinking and suggesting what are ways and alternatives to this trade barrier of sorts, so that more trade is encouraged and everyone feels secure. Sixer

 

Because T/T transfer fee is cheapper than bank fee on L/C procedures and the safety is highly guarateed once you can ensured that you received the money ,so Chinese peple prefer T/T, especially small company.

I think the solution is that you must find a servicable supplier for first orders.

And once you become their old buyers ,you can try to let  the seller accept T/T 30days.

Quoting from [sixer]:


Most Chinse shy away from L/C mode of payment when entering negotiations and insist on T/T mode

Is it ignorence? Is itFear Of Unknown or plain lack of Confidence?

Or they can not meet deadlines of delivery inherent in L/C terms? Feb 16, 2007 Dear Friends, To-day , eleven months after I post this topic, i can feel proud that a large number of members have put forward their views, some of which are really thought provoking. Let us now start thinking and suggesting what are ways and alternatives to this trade barrier of sorts, so that more trade is encouraged and everyone feels secure. Sixer

If the L/C come from trusted bank, it shouldn't be any problem for Chinese manufacturer to produce.  If they still reject it, it mean this manufacturer has problem with the quality, etc.  However, if the L/C comes from the bank that we never heard of or only famous in your country even me will not take the deal as it could be fake L/C and the bank doesn't have capability to guarantee anything.  The manufacturer in China has to pay their raw material with cash so they want to make sure they will get their money when they start the production or you can start with small business first and eventually bigger business after 4-5 times.  Sorry, this is reality; all party need to make sure they will get their money/products.  I am in US and I cannot accept all of the L/C payment if the bank I never heard of.

The answer is obvious: Advance payement is always sweeter than a deferred payment. To have your hand on the money in the beginning is surely a good thing.  Jokes aside, my suppliers put forward the fallowing excuses for refusing L/C payment:

1-)Additional costs that L/C brings

2-)Reservations, objections on the L/C due to small details or printing mistakes

3-)L/C binds their hands and feet, therefore there will not be any room for them to create excuses when they can not  meet the deadline or quality criterion.


To me, the only reason I insist on L/C is to push the supplier to meet the deadline. Although it seems so, you can not ensure the quality by L/C most of the time. So, the biggest advante is to have them pack the goods before the deadline.


Quoting from [sixer]:


Most Chinse shy away from L/C mode of payment when entering negotiations and insist on T/T mode

Is it ignorence? Is itFear Of Unknown or plain lack of Confidence?

Or they can not meet deadlines of delivery inherent in L/C terms? Feb 16, 2007 Dear Friends, To-day , eleven months after I post this topic, i can feel proud that a large number of members have put forward their views, some of which are really thought provoking. Let us now start thinking and suggesting what are ways and alternatives to this trade barrier of sorts, so that more trade is encouraged and everyone feels secure. Sixer

Quoting from [sixer]:


Most Chinse shy away from L/C mode of payment when entering negotiations and insist on T/T mode

Is it ignorence? Is itFear Of Unknown or plain lack of Confidence?

Or they can not meet deadlines of delivery inherent in L/C terms? Feb 16, 2007 Dear Friends, To-day , eleven months after I post this topic, i can feel proud that a large number of members have put forward their views, some of which are really thought provoking. Let us now start thinking and suggesting what are ways and alternatives to this trade barrier of sorts, so that more trade is encouraged and everyone feels secure. Sixer

I never use L/C for business i only use TT