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Payment in export process
- Oct 10, 2018 -

Payment in export process

There are three commonly used international payment methods, namely letter of credit payment method, TT payment method and direct payment method.

The l/c
Letters of credit are divided into two categories: clean letter of credit and documentary letter of credit. Documentary credit means the letter of credit that is accompanied by the documents specified, and the letter of credit without any documents is called clean credit. To put it simply, a letter of credit is a guarantee that the exporter receives payment for goods. Please note that shipment for export goods should be made within the validity of the l/c, and the l/c date of presentation must not be later than the validity date of the l/c.
In international trade, l/c is the preferred method of payment, and the issuing date of l/c should be clear, clear and complete. Several state-owned commercial Banks in China, such as bank of China, China construction bank, agricultural bank of China and industrial and commercial bank of China, are able to open letters of credit (the opening fee of these major Banks is 1.5‰ of the opening amount).

TT payment is settled by foreign exchange cash. Your client will remit the money to the foreign exchange bank account designated by your company. You can ask for remittance within a certain period after the delivery.

Direct payments
Payment is made by direct delivery between the buyer and the seller.

Author:Bunny Sun