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T/T & L/C Payment

STANDARD

Also: telegraphic transfer, letter of credit, bank wire

T/T is a bank wire transfer and L/C is a bank-guaranteed letter of credit, the two main payment methods in B2B trade.

Two payment methods dominate drinkware sourcing: T/T (telegraphic transfer, a direct bank wire) and L/C (letter of credit). T/T is the default for most orders; L/C appears on larger or more formal transactions.

A typical T/T structure is a deposit of commonly around 30% before production and the balance before shipment. The deposit exists for a concrete reason: the factory buys raw material and, on custom work, cuts tooling before any product exists. That money is committed before a single bottle is made.

An L/C is a bank’s promise to pay once you present documents that meet the terms, which adds cost and paperwork but protects both sides on high-value orders. Many factories will accept an L/C only above a certain order value, so ask early.

The balance-before-shipment step can feel risky to a first-time buyer, but it is standard practice because the factory cannot recover goods already at sea if payment fails.

Practical takeaway: Budget for a deposit of roughly 30% before production and plan the balance for before the goods leave the factory.

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