Trade Finance Options for China Imports
Choosing the right payment method is crucial for protecting your money and building trust with suppliers. Here are the main options.
TT (Telegraphic Transfer)
Most common method. Buyer sends bank transfer directly to supplier. Typical terms: 30% deposit, 70% before shipment. Risk: if supplier disappears after deposit, you have limited recourse.
LC (Letter of Credit)
Bank guarantees payment when shipping documents are presented. Safer than TT but more expensive. Good for large orders and new supplier relationships.
DP (Documents Against Payment)
Shipping documents released to buyer only after payment. Balance of safety and cost.
LC Credit Sales (CSMG Specialty)
Qualified buyers import without upfront payment. Pay after goods arrive on 30-90 day terms. Best for cash flow preservation. Learn more →