Letter of Credit (L/C)

Most Common & Safe for Export

• An L/C is issued by the buyer’s bank and guarantees payment to the supplier upon meeting specific shipment and documentation terms.

• It protects both parties; especially for first-time or large orders.

Types include:

• Sight L/C: payment immediately after document acceptance
• Usance/Deferred L/C: payment after a certain period

Telegraphic Transfer (T/T)

Preferred for Small Orders or Repeat Business

• Faster but riskier for suppliers unless trust is established.

• T/T is a direct bank-to-bank wire transfer.

Common structure:

• 50%–75% advance
• Remaining 25%–50% after shipment (against scanned documents or BL copy)

CAD & Full Payment Methods

Used for trusted or low-risk deals

• Used when trust is moderate and L/C is not required.

Payment is made after the buyer receives shipping documents via bank.

For small buyers or low-value orders, full payment is often accepted via:

• Western Union
• MoneyGram (less common)
• T/T (100% in advance)

Local Payment (BDT)

Payment in Bangladeshi Taka (BDT)

• Mostly used when local buying agents handle order coordination or inspection.

Can be made by:

• Bank transfer (BEFTN/RTGS)
• Cross-cheque or account payee cheque
• Cash (rare and less preferred due to compliance issues)