Structured trade knowledge covering terms, processes, regulations, and practice.
An L/C is a conditional bank promise to pay the beneficiary when compliant documents are presented.
T/T moves funds bank-to-bank. Common structures: 30% deposit + 70% before shipment or against copy B/L.
L/C adds bank document control; T/T is faster/cheaper but trust-based.
Clear payment terms state method, timing, currency, bank charges, and consequences of default.
Advance payment is money sent before shipment — typically 10–30% deposit to start production.
Net 30 is open account credit — buyer pays within 30 days of invoice date without L/C.
FOB/CIF describe risk and freight; L/C/T/T describe settlement timing — mismatches cause disputes.
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