T/t Vs L/c?

[Z-trading]

Hi,

I am about to import some stuff from a forign country. I have done it many times before (based on mutual trust sending money before getting the stuff) but this time it is a totaly new company i am dealing with.

They want 30% in advance to begin manufacturing my stuff and require the rest 7 days before sending the stuff to my forwarder!

I prefer to gurantee them the payment but not pay untill i see the stuff before shipping (FOB), this way i see what i get before paying, if that is i am gonne get anything at all! I guess that would be the Letter of credit? Right?

What do you suggenst?

Best regards

Z-Trading

[Axel]

The down-payment of 30% means trust.

To open a L/C guarantees payment but does not guarantee quality.

The bank handling the L/C will not pay for the merchandise but de facto for the documents. Means once the exporter presents proper invoice/packing list, bill of lading, and perhaps a cert. of origin, the bank has to pay the amount irrevocably agreed to.

To check the stuff, before shipping, you should arrange for a quality control and specify an inspection certificate signed by (perhaps Z-trading) or an agent of your choice.

[Rasel]

Dear Sir,

Being a Exporter I prefer to work on L/C , T/T is for those who are your many time tested old supplier.

Regards/Rasel