why China prefers T/T?

【A india guy who ask this question ,what do you think of it ?】
ReR q g2W!O"B Most Chinese shy away from L/C mode of payment when entering negotiations and insist on T/T mode.
j4{s(Y f q Is it ignorance? Is it fear Of Unknown or plain lack of Confidence?
y@Oj%d$aNq Or they can not meet deadlines of delivery inherent in L/C terms?

compared with L/C, T/T charge less bank fee .

but i think L/C is safer ,we can choose the price term depending on the customers .

Reply #2&#3

Different people have different views
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\p+Q+a*Fz ? here a guy give his opinions :
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[quote]firstly, i have a question. why do you select the L/C as your payment?~'z Ss{

PR8]jDB if you have the difficulty of capital, maybe the supplier has it too.
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i think the key is credit standing. both of us need the time to know each other better. so let's begin from the small order to give both of us some opportunity to know each other clearly.in our China. International business is very popular now, but the insurance of international payment hasn't been established completely.
%C"{dJ(fG*GHS.?i some one don't know your bank ,your custom well. we still need more time to know the world.[/quote]

maybe T/T is safter than L/C ,now the state is different.

Reply #1 levone's post

i think risk of the T/T is smaller and its operation is smiple.

T/T is safer than L/C also with less cost .and is more convenient .

Also a guy from Turkey show his agreement:

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[quote]You're right. They don't seem to negotiate other payment methods except T/T. We also are working from China in lighting business.
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L:n:j It is the same for us,too. To my impressions, they learn foreign trade newly, most of them can't speak English well,.they promise very easily to do what you want on production,quality,delivery,shipment etc. to have the business from you. Most of them don't have their own export licenses and they use other companies..M2g;g6w9Z$KC;P
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Further L/C brings strict rules for them and as they know their way of action in trade, they are afraid of being late to fulfill the conditions and terms of the L/Cs. X] mDx;s1x

cf.j6X[2`&?+r But this is a fact that they learn too fast and the bosses are very young.Each time we found them a little bit more qualified.3Y\vJ3Y
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I hope they will also accept other payment ways,too, in the near future.[/quote]

Cause in tradition view, Chinese people would like cash on delivery. In other hand, credit mode is not yet complete in China, and the law also.+qH'B._+C

7B#H ^l4QI I am newbie, it's just my point.

Reply #9 terrylee83's post

indeed , it has more to do with our country's customs, characteristic...
7sp:D | K it's traditional and cautious

I think besides what you said above, another important reason is that doing the busiess by L/C will cost much more time since the process is very complex sometimes. While exchage rate of RMB to USD is dropping so quickly, when we exchange USD to RMB, the money has become much less. The more time it cost, the more lost we suffer. This  is one important reason for our company to choose T/T.

theylike simple way

Most of Chinese factories are build by the farmers.they like make business easily.T/T is like the way of inland selling they are customed with that...

T/T is easier and more convenient.
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o0_]!Z/lMo$r Every time for correcting some trems of L/C will cost some fees.
$e9RTj,{Tz And more complete.

Reply #13 ritawang1018's post

but the goods cannot be well-controlled by seller ....that is dangerous

I prefer T/T,because I don't know L/C

Sure, T/T is easier to operate than L/C.

[quote]Originally posted by [i]levone[/i] at 2008-5-9 13:18 [url=http://www.fobshanghai.com/redirect.php?goto=findpost&pid=3248905&ptid=323087][img]http://www.fobshanghai.com/images/common/back.gif[/img][/url] _,E/^LO4_)bTw
Also a guy from Turkey show his agreement:
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[/quote]
U{o$^'lthcn$Nl^C I agree with this opinion very much.

i agree with 8#. i am in a small company now, and we do foreign trade carefully cause we don't do i t by ourselves and we are not familiar with the rules. so we just do T/T. we will export by ourselves in few months, then we may do L/C , but the customers must be our old customers.

Reply #18 maggie3140's post

but you should also take care even it is your old customer ,isn't it?

T/T

open an L/C is very troublesome . and it will tie up our money . we must pay a large sum deposit . i think that is the reason we often chooice T/T payment . indian is very strange . sometimes i think they are very acerbity .

me too, only know a little

L/C is better for you and your client. Only bank fee is higher than T/T. )zLk-aLOH-P
It's a better way to choose L/C if you have more experience in operation.rO;VN&Qu;h
It will be a nightmare if you have no experimence in doing L/C.

t/t is simply and safer,and also less bank charge

i think it is simple for anyone

reason for using TT not LC

reason is very obvious ,TT is safe ,LC sometime has trap
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tR5i*{"A~8Eq"Z [[i] Last edited by levone at 2008-6-26 14:18 [/i]]

We all T/T 50% before production, then T/T 50% after the clients see the copy of B/L . That's much more safer

L/C IS MUCH MORE troublesome than T/T

T/T in advance is the best pattern of payment. ;K%Z9\fL/I
Commonly, L/C is safe, but some of L/C include "soft term" , which you can not deal with it without your customers help. -d?/ud$r\2Q#P
These term will lead to you can not prepare all the document well. In my opinion, that is the real reason that we prefer T/T IN ADVANCE THAN L/C.

my view

T/T is more simple to handle with,and most of the L/C terms are very trouble,even i can't catch thiere means.

Personally,I like TT better.
5Ud\R7t6r 1.little Bank fee.8r:j~B
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2.Easy to conduct.5aM P'o
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3.Usually faster to receive the money.I/O"M5F@M8u;E$a)S
4.Deposit will bring more money to as circulating funds.
+{+P3p/gX}k+v -------------------------------------------------{-r@z Gi1i)R*H
Of course,if it is a new client, I usuallly choose L/C at sight as the first orders.