L/C vs T/T: How We Structure Six-Figure Orders
A plain-language guide to payment structures on large orders — deposits, L/C at sight, and what actually protects both sides.
Once an order moves past roughly USD 50,000, the payment structure matters more than the unidad price. Two tools dominate: T/T and letters of credit.
T/T works like this: 30% deposit to lock production, 70% before shipment against a scan of the draft documents. Fast, cheap, and the exporter carries most of the risk during production.
L/C at sight shifts the risk: the buyer's bank pays against compliant documents, and the exporter only ships once the L/C is issued and checked. Slower and pricier, but it replaces trust with banking.
What protects both sides more than any clause is evidence: pre-shipment inspection reports, loading photos and a packing list that matches the invoice line by line. Payment terms are structure; QC records are trust.
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