Replying to [yarenimex]:

"Most of them don't have their own export licenses and they use other companies."

--Yes, because you don't know how much a trading or a manufacture have to pay so that they can get a export license from government.
It is not so easy to get a export license..

"Further L/C brings strict rules for them and as they know their way of action in trade, they are afraid of being late to fulfill the conditions and terms of the L/Cs."
--Another reason is that T/T is easy and simple..also it can save a lot of banking charges and other charges.

"But this is a fact that they learn too fast and the bosses are very young."
--Their bosses are not young...Most of the bosses in China are old (age 35-60), especailly those who have the factories. But the sales representatives are young, and they can speak English( maybe some are good, some are bad)

Replying to [sixer]:
I think you just encountered some small and rigid company, their price is very low and they only accept T/T, but our's accept T/T, L/C AT SIGHT, OR 30 DAYS, ETC. You can't judge all just from some. Also, I have to say that most people from far east countries don't speak english well, not only chinese.

Replying to [sixer]:

This question is directly related to how well established and experienced the company is, Vs. how unestablished and not knowledgeable the company is. Having lived in Asia for 9 years and representing well over 119 factories, I can say it's all in the experience.

Contrary to earlier comments that most Chinese companies prefer TT, that's just nonsense. TT is standard payment for a downpayment, but not for the entire transaction. Most experienced and reputable importers and exporters will tell you that an L/C at sight is the safest way outside of escrow, that one can do business with someone they don't know. LC shows the buyer/importer has the money/credit and holds the factory to their end. The factory is protected because they know if they follow the terms of the LC they will get paid. Typically both parties win in this scenerio.

The problem arises when a young company wants to do big business, without the big business experience. Seasoned manufacturers are able to foresee problems and/or been through enough problems to give you realistic expectations. Young manufacturers have not, and many will promise you the world to get your business; but when problems arise their inexperience shows.

The last part has to do with your relationship with the factory. Having lived and doing business with the Chinese for years, I'm now familiar with their ways and customs. This familiarity eliminates dis/mistrust of buyer/seller. These relationships of course were developed over time. Often a phone call is all that is required to place orders with some of my old factory partners, as we know the payment is a moot point. Now...would I do blind business in a foreign country if I still lived in America? Not in a million years. It would be LC or new factory. Period. Hope this helps.

Replying to [sixer]: I belive is ignorance and fear of the unknow. i have same problem and i have to explain some to my supplier how L/C works, before they agree on L/C.

Replying to [Connie Liu]:To my understanding letter of credit at sight can't be faked. Even if you say, you want to understand the buyer before accepting L/C.That don't grantee that you can't be dupe, just the fact that the buyer has done T/T before to you. The fact remains that letter of credit is the safest international payment instrument, no matter were it is originating from.

Replying to [sixer]:
Once i worked with one mainland manufacturer and European client.I asked the manufacturer if they could accept L/C instead of T/T and I explained to them we had professional Chiese staffs here who could help them in L/C terms checking.He hesitated for moment,told me everything was no problem except that the prices had to be increased several percentage cos of bank transaction charges on L/C.Then he was afraid his offer would lose advantages in prices compared with ten suppliers around him.Ok,then I understand,sometimes keeping low prices press suppliers a lot.

Replying to [Connie Liu]: I wish to inform you that there is no difference between natinalised Bank and limited bank(private) . Banks in India are controlled by Reserve Bank of India. All are same as per law and by practice.

Replying to [trado]:Oppertunity is exploited to their favour. The basic quality of humanbeing.

Replying to [sixer]: Everyone like convenience. TT is the most convenient way of receiving payment.

Then why should not the China supplier prefer TT?.

Regards

Replying to [balu1234]: