Trade Information

Types of Payment Terms

1. Basic Policy ( 100% payment before shipping )

•  Usually, the seller requires total payment from the buyer before shipment by T/T (Telegraphic Transfer). After the buyer gets the Proforma Invoice from the seller, the payment should be done within a short period, such as 3 working days to settle the deal. Otherwise, the deal will be automatically cancelled. After the payment is done and confirmed by the seller, the stock will be shipped according to the agreement between the buyer and seller.
  
   Sometimes, partial payment can be first realized to preserve the ordered stock, and then the buyer does balance payment after a certain period. The seller does not do the shipping until 100% payment is done.

2. Alternative Policy ( Partial payment before shipping)

•  When the seller and buyer has built up a stable trading relation, and the seller considers the buyer reliable to a certain degree, partial payment before shipping may be employed. In such a case, the buyer does partial payment (30% ~ 70% in different cases) before shipping. After the shipping is done and the seller sends a copy of BL to the buyer to confirm the shipping. All the documents including BL will be sent to the buyer only when the balance payment is done.

3. L/C payment Policy

•  When the total amount of order exceeds a certain amount, L/C payment may also be adopted according to the buyer's requirement. The usual procedure is as follows:
• 1) 10% T/T prepayment to confirm the deal
• 2) The buyer opens the L/C from his bank and sends the copy to the seller
• 3) After agreeing on all the conditions on the L/C, the seller ships the stock to the buyer.
• 4) The seller submits all the required documents to the bank, usually including contract, commercial invoice, packing list     and bill of lading.
• 5) The bank examines the documents and transfer the payment into the seller's account if the conditions of the L/C     are all met with.
• 6) The buyer gets the full set of documents either from the bank or from the seller and then picks up the stock when it     arrives in the port.

4. Other types