What Is the Difference Between T/T and L/C for Importers?
Safety First: 5 Steps to Secure T/T Payments
While T/T is faster and more cost-effective, its safety depends on your internal discipline. At Mekong Garment, we recommend this 5-step checklist to ensure your capital is protected throughout the production cycle:
| # | Critical Action Step | Why It Matters |
|---|---|---|
| 1 | Verify Legal Entity Names | Ensure the beneficiary name on the Proforma Invoice (PI) matches the factory’s business license and bank registration exactly. Never send money to personal accounts. |
| 2 | Use a Milestone-Based Split | Stick to the 30% Deposit / 70% Balance rule. This ensures the factory has skin in the game while you hold the majority of the funds until the goods are finished. |
| 3 | Independent Inspection Linkage | Make it clear in your contract that the 70% balance will only be released after a successful Pre-Shipment Inspection (PSI) report is issued and approved by you. |
| 4 | Double-Check Bank Details via Voice | Email hacking is real. If a factory suddenly asks to change bank details via email, stop and call your contact person directly to verify the change over the phone. |
| 5 | Request a SWIFT Copy Immediately | Once you pay, send the SWIFT MT103 copy to the factory. This allows them to track the funds and immediately begin fabric procurement without waiting for the bank’s notification. |
Pro Tip: Using an established manufacturer like Mekong Garment allows you to leverage a proven track record of transparent transactions, reducing your commercial risk to near zero compared to unverified agents.
