i have one customer from USA, he want to order hot-dipped galvanized steel grating from our company , but the payment term is 100% L/C at sight .
today i have consult with company manager , he isn't agree with this payment term .
because 100% L/C in advanced , it means that no deposit ,and have financial pressure .
more important , we don't know customer bank is trusty or not ? some high risk country , such as ,Afghanistan ,Iraq and so on ,these country bank isn't safe .so most of factory refuse to adopt L/C payment .
most of payment term is 30% deposit in advanced, 70% balance when receive B/L copy .
but some of buyers are afraid to cheat deposit money , so application L/C payment .
some customer common make 20% deposit , 80% L/C , but in Bengal country , customer only agree with L/C , not T/T payment . it is legal rules .
if customer insist on L/C payment ,we must consider dollar rate , because the dollar rate isn't stable .L/C payment is very popular in European country .
it is between bank and bank business trade , not buyers and sales business touch.
when make L/C contract , we must check detail and note discreet place .
if have too many discreet , we have to pay money to local bank fee .
today i have send bank detail informations to customer, he will check , and waiting for feedback .
i don't know customer can agree with 20% deposit ,80% L/C or not?
i am very serious this order , hope have long-term cooperation.
if have good suggest ,let me know .