L/C vs T/T Payment
L/C adds bank document control; T/T is faster/cheaper but trust-based.
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Trade31
Learn common international payment methods, risk controls, and settlement choices.
L/C adds bank document control; T/T is faster/cheaper but trust-based.
Read →Clear payment terms state method, timing, currency, bank charges, and consequences of default.
Read →Net 30 is open account credit — buyer pays within 30 days of invoice date without L/C.
Read →FOB/CIF describe risk and freight; L/C/T/T describe settlement timing — mismatches cause disputes.
Read →L/C adds bank document control; T/T is faster/cheaper but trust-based.
Read →Clear payment terms state method, timing, currency, bank charges, and consequences of default.
Read →Net 30 is open account credit — buyer pays within 30 days of invoice date without L/C.
Read →FOB/CIF describe risk and freight; L/C/T/T describe settlement timing — mismatches cause disputes.
Read →A letter of credit (L/C) is a bank’s conditional payment undertaking against complying documents. It protects sellers from buyer credit…
Read →Documentary collection uses banks to present shipping documents against payment (D/P) or acceptance (D/A). Banks handle papers — they do…
Read →Open account ships goods first and invoices for later payment (Net 30/60/90). Maximum buyer convenience — maximum seller credit risk…
Read →D/P releases documents only after payment; D/A releases after acceptance of a tenor draft. D/A is closer to open-account risk with a bank…
Read →Discrepancies are document defects versus the L/C. Most can be prevented by a pre-shipment checklist; some require amendment or buyer…
Read →Most export T/T deals split deposit before production and balance before shipment (or against B/L copy). The split is a negotiation of…
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