Selecting the appropriate payment method is crucial for international trade success. Compare L/C and T/T options to make informed decisions that protect both buyers and suppliers.
Letter of Credit (L/C)
L/Cs provide security through bank guarantees, ensuring payment only upon proper documentation. Ideal for high-value transactions or new trading relationships where trust needs to be established.
Telegraphic Transfer (T/T)
T/T offers faster processing and lower fees, making it suitable for established partnerships with proven track records. However, it provides less protection for both parties.
When to Choose Each
Consider transaction value, relationship history, and risk tolerance when selecting your payment method.
Emma Green
Trade Finance Specialist
Expert insights and analysis from our team of international trade specialists.