Payment terms decide which mills will work with you and at what price. Here is the honest view of both instruments from the supplier side of the table.
Comparison
| Factor | T/T (30% deposit, 70% balance) | L/C at Sight |
|---|---|---|
| Bank cost | Low (wire fees) | 0.5-1.5% + document fees |
| Buyer risk | Deposit exposed before shipment | Low — bank pays against documents |
| Mill price | Best price | Often +1-2% to cover L/C cost and discrepancy risk |
| Speed | Fast | Slower — issuance and document checking |
| Best for | Repeat business, smaller orders | First orders, large values, strict markets |
Structures That Work
- First order: L/C at sight, or T/T with 30% deposit + 70% against copy of B/L and MTC. Add SGS inspection for extra assurance.
- Repeat orders: most buyers move to T/T — better price, faster shipment.
- Avoid: 100% advance payment to any supplier you have not audited, and L/Cs stuffed with soft clauses you cannot control.
FAQ
Why do some mills refuse L/C from certain banks?
Confirmation risk. If your issuing bank has weak international rating, expect a request for a confirmed L/C or a switch to T/T deposit terms.
Do you accept both?
Related Products from ChinaCNU Steel
Yes — ChinaCNU Steel supports T/T and L/C according to order size and buyer profile. Discuss terms with our export team.