T/T stands for Telegraphic Transfer. In other words, an international wire of funds from the buyer's bank to the seller's bank. When a Chinese supplier asks for a T/T payment, what they really mean is they want a wire transfer. (Technically, a T/T is not exactly the same as a wire transfer through the SWIFT system, but the vast majority of people think of them as the same thing.) A wire transfer based on SWIFT is the most common payment method in international trade with Asian countries. … [Read more...]
Sourcing From China 101, Part 6: How To Keep Leverage Over Suppliers
Up until now, I have explained how to find a good supplier and what terms to negotiate from the get-go. But this is not enough. Buyers who are new to China often make a mistake: they trust their suppliers too much. How to keep leverage over suppliers? China is a dog-eat-dog environment. You can’t trust a company simply because you have checked and qualified them. You need to structure your deals in such a way that you keep some power over your supplier and do not become financially … [Read more...]