Common foreign exchange settlement methods

The payment method of L/C letter of credit belongs to bank credit, which is a very safe payment method. However, the credit of the issuing bank must be good, and the document personnel should carefully review the documents. The company's business, storage and transportation, and document departments should coordinate and avoid discrepancies in the documents.  

2. D/P is payment against documents. After we ship the goods, we prepare our negotiation documents and submit them to the customer's bank through our bank. The customer's bank prompts that the documents have arrived, and the bank submits the documents after the customer makes payment.  

3. D/A is the process of presenting documents to the customer's bank through our bank, but the difference is that the customer only needs to accept our documents and can take the original documents, and then make payment after the due date.  

4. T/T is a telegraphic transfer (the documents are usually mailed directly by us to the customer without going through a bank). If we use T/T payment method with the customer, the general practice is that the customer first needs to give us a 30% advance payment, and the remaining 70% is generally insured. After the goods are loaded onto the ship, the customer pays with the original bill of lading that we have transmitted, and then mails the entire set of original documents to the customer after the payment is received