Before you place an export order, agree on how and when you pay. The right payment term protects both buyer and seller. Here are the main options, in plain words.
1. T/T (bank transfer) with deposit
The most common term in FMCG trade. The buyer pays a deposit (for example 30–50%) to start the order, and the balance before or against shipping documents.
- Good for: regular orders and growing relationships
- Cost: low (only bank transfer fees)
2. Cash in advance
The buyer pays 100% before production or loading. Simple and fast, but all the risk is on the buyer, so it is mostly used for small or first orders.
3. Letter of Credit (L/C)
The buyer’s bank promises to pay the exporter once the correct shipping documents are presented. Very secure for both sides, but bank fees are higher and paperwork must be exact.
4. Documentary collection (D/P)
Banks exchange the shipping documents for payment. Cheaper than an L/C, but with less protection.
5. Open account
Goods are shipped first and paid later (for example 30 days). Only used between partners with a long, trusted history.
Quick comparison
| Term | Buyer risk | Seller risk | Cost |
|---|---|---|---|
| T/T with deposit | Medium | Low | Low |
| Cash in advance | High | None | Low |
| L/C | Low | Low | High |
| D/P | Low | Medium | Medium |
| Open account | None | High | Low |
Tip
Agree on the payment term together with the Incoterm (FOB or CNF) and the documents you need. See our guides on ordering a mixed container and export documents.
Ready to order? Contact us to get our price list and product catalogue. FCL, LCL and mixed containers, no MOQ per item.