Import & Export

How to Pay Overseas Cookware Suppliers: TT vs LC Explained

3 min read · By Triply Circle

How you pay determines who holds the risk. Here is the honest comparison - and the payment structure experienced importers actually use.

TT - Telegraphic Transfer (wire)

Bank-to-bank transfer. Fast, cheap ($15-$50), flexible. Risk: once sent, recall is nearly impossible. Standard structure: 30% deposit with order, 70% against passed pre-shipment inspection - never 100% upfront.

LC - Letter of Credit

Your bank guarantees payment when the supplier presents compliant documents (B/L, invoice, inspection certificate). Maximum protection for both sides - but costs 1-3% of order value and needs precise paperwork. Worth it above ~$50,000 or with new suppliers.

The milestone structure that works

1. 30% deposit - commits the factory, limits your exposure
2. Mid-production photos - free confidence check
3. 70% against inspection pass - your leverage for quality

Any factory demanding 100% upfront is a red flag, not a norm.

Frequently asked questions

Is TT safe for first orders?

With the 30/70 milestone structure and pre-shipment inspection, yes - it is the industry standard for SME importers.

When is an LC worth the cost?

Large orders ($50k+), new suppliers, or complex specs - where the documentary protection justifies 1-3% cost.