Payment
T/T explained
Telegraphic Transfer (Wire)
Bank wire, the default in China sourcing, usually structured 30/70 or 50/50 deposit and balance.
Full definition
Factories prefer T/T because it settles in 1–2 business days at low cost. The common structure is 30% deposit and 70% before shipment. The exposure is obvious: once the factory holds 100% of the money, late delivery or quality failure leaves you with little leverage. Tie the balance to a passed inspection, and split the last tranche to after the bill of lading. Confirm any change of bank details by phone — business email compromise is the single most common loss in this channel.
Worked examples
T/T 30% deposit, 70% before shipmentT/T 30% deposit, 60% after PSI pass, 10% after B/L
Related terms
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