Table of Contents
Common Payment Methods
| Method | How It Works | Buyer Risk | Best For |
|---|---|---|---|
| T/T (Telegraphic Transfer) | Direct bank wire | Medium-High | Established suppliers |
| L/C (Letter of Credit) | Bank guarantees payment | Low | Large orders (>$50K) |
| D/P (Documents against Payment) | Pay to get shipping docs | Medium | Sea freight |
| Western Union | Cash transfer | Very High | Small samples only |
| Trade Assurance | Alibaba escrow | Low | Alibaba orders |
Payment Terms Comparison
| Term | Deposit | Balance | Risk Level |
|---|---|---|---|
| 30/70 T/T | 30% upfront | 70% before shipment | Medium |
| 50/50 T/T | 50% upfront | 50% before shipment | Medium |
| 100% advance | All upfront | β | Very High |
| 0/100 after inspection | None | 100% after PSI pass | Low (buyer) |
Risk Management
- Never pay 100% upfront to unverified suppliers
- Use L/C for orders over $50,000
- Always inspect before paying balance
- Keep payment records for disputes
Best Practices
- Start with 30/70 T/T for new suppliers
- Move to better terms after proven track record
- Use Alibaba Trade Assurance when possible
- Verify bank account matches business license
How ChenXin Helps
We manage payment terms as part of sourcing: negotiate favorable terms, verify supplier bank accounts, and hold payment until inspection passes.
Q: What is T/T 30/70?
A: 30% deposit upfront, 70% balance before shipment. Most common for China sourcing.
Q: Should I use L/C?
A: Yes for orders over $50,000. Bank guarantees payment on document presentation.
Q: Is 100% advance safe?
A: No. Never pay 100% upfront to unverified suppliers.
Q: Does ChenXin manage payments?
A: Yes, we negotiate terms and verify accounts as part of sourcing.
Q: What services does ChenXin Cargo offer?
A: Full-service freight forwarding including sea, air, rail, and truck shipping from China to Russia, Central Asia, and UAE.