Export Payment Methods Compared: T/T, L/C, D/P and O/A Risk
Payment Sets Collection Risk
Getting paid is a top export risk. Payment terms are a money-vs-goods game that reflects trust.
Methods Compared
- T/T: Most common, deposit + balance; safer with higher prepay
- L/C: Bank guarantee, pay on compliant documents; costly and strict - large new orders
- D/P: Buyer pays to get documents - refusal risk
- D/A: Buyer accepts draft to collect - higher risk
- O/A: Ship first, pay later - highest risk
Risk Ranking
For sellers: 100% T/T prepay > L/C > D/P > D/A > O/A.
Auto Parts Advice
- New buyer: 30-50% deposit plus balance before shipment, or L/C
- Regular buyer: relax to D/P or partial O/A
- Large orders: consider credit insurance
- Document everything in contract and PI
Huami Tip
Balance terms against amount, credit and competition - Huami supports flexible terms.