Replying to [sixer]: L/c is safere for buyer..
Well t/t is more convinent to supplier as they get some deposit and remaining after shipment or before shipment as per there deal. and it cost them less banking charges
for l/c they loose more money due to bank charges

Replying to [sixer]: TT Makes business easier and Safter as to Seller for the first business ! As to L/C, not all of the sellers are professional in this area ! So,TT is common !

Replying to [Ammeet]:
Dear Ammeet, Safety is for buyer . Infact, the buyer has to deposit funds in bank for opening L/C and make payment for L/C charges too.If seller does not perform,buyer still loose bank charges.
Seller should feel safe that once the goods are shipped,he will get money from his bank

Replying to [sixer]:
Maybe some of these guys (Chinese businessmen) have had some bad experiences in the past with this mode of payment .And you know how fast "bad news get around" Its like "bush fire"

Replying to [trado]:

I sell raw material to China and the Buyers always insist on L/C.
I guess it's not their ignorance or lack of knowledge, I guess it all depends on which side you're on.
If you become a Seller, you will try to get T/T as payment terms but if you are the Buyer you will insist on L/C upon the reason of (your money) safety





I agree with you.
on the other point, the payment as T/T for the first cooperation, will show the two sides credit and honest. after several orders, L/C can be negotiated.

Replying to [sixer]:hi Sixer, you have made a good question indeed.first of all ,i would like to say that L/C is the best term of trade for both buyer and seller,and it will give security to the trade most time.

However, many frauds come from L/C and some thing like credict card,do you agree with that ?I should accept to the piont that many Chinese vendor has little knowledge of L/C ,when the trickster makes use of this payment term to deceive .

As to T/T ,there two obvious good points,one is vendor can get the money quickly back .second is to avoid these troublesome matter.

But i need to say that there are many vendor in Chinese is doing L/C business too. Can you find them ?

personal view

Jack

Replying to [Jack ]: Yes, we also accept L/C. Though we will a prior consideration on T/T. Because we also should pay for the material .All the factory can be servival with enough capital.
But it isn't when China accept T/T ,she isn'tcredited !
And I also want to ask why you won't do the business by T/T?

Replying to [sixer]: I would use a Confirmed Irrevocable Letter of Credit when buying (if you can find a bank that will write one) and, ship (CIF)Cost, Insurance, Freight when shipping!

Replying to [sixer]:
Hi
We use many factories and most use L/C payments, but dont think they like to use this type of payment.
The factory can wait much longer for payment as with T/T you get your 30% paid.
Other problem is like using the pay pal service if the customer has any problems or the bank is not happy then you dont get paid, i use the pay pal reason as many customers can now get refunds if the product is not what they thought from the web site, or if sent by delivery company with no tracking number the customer can get refund if the seller can not proof sent?
to know the customer of payment sender can stop or slow payment is a worry for any business, dont forget if the factory send 200 containers per year and 50% is L/C how can they afford to complete the production?
just a thought

Replying to [Jack ]:Dear Jack,
Fraud on L/C can be easily avoided by asking your bank to Test L/C that is getting reconfirmation of L/C from Issuing bank.