Replying to [sixer]:TT (wire transfers) need to be cleared through a bank account and are sent directly to the supplier. The wire (if sent for same day) is an immediate payment for that same day. Unless the clearing bank on the recieving end is fairly disorganized in which case it could take a few extra days to hit their account. Some banks in the former CIS and Asian countries actually sit in the funds for a few days to make some interest. Might not seem like a lot on a 50,000$ wire, but multiply that by? 1000 wires and you've got 50 million at even a modest overnight investment at 3.5 percent per year and each day that they sit on (delay) the funds to the supplier earns them 4861.00 dollars. On an annual basis that adds up to almost 2 million income for them for every day that they delay the payment. Some of these banks will delay a payment by two day max, so the supplier gets in on the third day and then fianlly ships you goods. LCs are a royal pain in their to clear and usually costs them a fee to clear the payment. TTs are fast and easy and the only fee they might pay is a small deposit fee (25-50$).

Replying to [sixer]:Many Chinese supplier prefer T/T mode of payment. Acccording to my experiences that is because they can not or do not want to meet deadlines of delivery. Another important thing is that they use the T/T as loan without any need to pay benefit and they do (aware) not hold the delivery time.

Replying to [sixer]: Hi
I will agree some of your point,and some not. Course I think when the order is not big amount I preder buyer doing TT payment,when is big amount I would like to ask some percents of amount for TT (30%~50%),and the less would by TT.
Sometimes you have to give chance for each other for building up the business relationship,also you need to safe yourself too.
Anyway,see what kind of order for what kind the deal with.

Replying to [sixer]:i think is because they are affraid of not meeting the quality as companies in europe.

Replying to [sixer]: I'm noticing that a lot of reps (not companies) in China are requesting W.U. payments. My suggestion is if you do so, you should always order small for at least 3 months. Most reps will try to push you in buying more goods but if you do that, it's a possibility that you won't receive for what you paid for or you receive the correct merchandise. I did research for EMS and they accept COD. If the company really want your business they will except this payment method because they are legit.
Hope this helps all....

Replying to [sixer]:
To start with, it's much easier to handle, no complication nor discrepencies, it's a direct deposit! Secondo, depending of the kind of L/C it could be complicated unless experienced, too many terms should be clearly specified in order to avoid confusion and delay. Last but not the least it could be time consuming.

Replying to [Connie Liu]:I think part of tt and part of l/c is a good idea to balace both sides at the first deal. If just we considered the tt is not fair to the import .and just by l/c the company always lacks the ability to do this. But any way, the chinese makers should be educated right ! And oversea buyers should learn a little bit more about china and chinese.Understand is a foundation of trust

Replying to [sixer]:We are manfacture for health massager, and last year, we did a business by L/C at sight ; From that trade, we felt that the process was complicated ; Not because of delivery time or other . If not take care, we had to pay for much fee for bank.

We think T/T is simple , **% T/T in advance is good for factory which needs money to purchase the material .

Replying to [sixer]:
Chinese companies will onsist on TT after having prepared the goods for delivery according to my experiences in China.

You can ask at any time for a proof by photo and if they will not supply what they have granted, there are always powerful tools to make sure that the promissed deal will be executed for you.

One thing that has changed is that forwarders want to get into hold of these goods, which try to deliver the goods only from the factory to the harbour or airport but do not cover the cost for flight or shipping.

Therefore I strongly recommend you to fix the prices by fix the deal on delivery free station in your home town.

The customs you can do at any time in your town by yourself with the documents, that means there is no need to pay for such services in China - and maybe again in the country where the goods should be delivered. I am writing these words to avoid a bad credibility of Chinese manufacturers who are betrayed by forwarding-intermediate-logistics companies and also to avoid all the frustration on the customer side who believe that the manufacturers are eventually doing criminal actions. The law cases will lead to no result later, because the criminal intermediate-logistic-firms will have dissappeared from the market with your money that you paid TT.

Replying to [Connie Liu]: Some China seller insist on TT in advance. How can buyer recover TT in case of no shipment? What financial doc seller can give in return to make buyer's TT safe? Litigation is too long a procedure.

Do China bank's give Performance bank Guarantee?

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