Today, a new customer from India want to place an order about USD13000, but they require the payment is L/C. But our boss dare the payment L/C is not safe , he insist in 50%TT in advance and 50%TT before shippment.
I don't know do L/C if safe with Indian customer.
Please tell me your idea about this.

I think it will be ok~

Order amount is too small to work with LetterofCredit.You should try to pursue him for T/T payment instead.

TT will be better is you charge the customer's deposit!! Mostly, L/C is not the best choice fior us, for we have to hare much more bank charges!

jemmasoly wrote:

Today, a new customer from India want to place an order about USD13000, but they require the payment is L/C. But our boss dare the payment L/C is not safe , he insist in 50%TT in advance and 50%TT before shippment.
I don't know do L/C if safe with Indian customer.
Please tell me your idea about this.

It is true that L/C against small amount is inconvenient both for seller and buyer and also it is incurring extra charges. But US$13,000 is not to be said as samll amount for L/C peocessing.

Most of people say in the one side. In your case the most safe and easy way is 100% T/T in advance. But buyer think how can he secure the trading in safe. In his side the most safe way is deferred payment after receiving the cargo. So he might want L/C.

L/C is the most safe way of payment in international business. It is nonsense to say not safe. But the L/C should be opened by bank having capable reputation internationally or opened by confirming thru such bank.

So ask buyer L/C opened by or confirmed by such bank. Because I think the first transaction should be done in mutual trust between the two concerning parties. Profit and expenses are next matter.

Jay Song

thank you very much!