A growing number of cancellations and non-payment cases are leading many China suppliers to protect themselves from potential losses.
Financial pressures in global markets are forcing an increasing number of Chinese exporters to apply for risk-free payment methods or credit insurance. The latter is gaining ground especially for suppliers of high value products.
Many small and medium-sized operations now specify TT as their preferred payment method. Compared to L/C, TT is the fastest and safest option for exporters. With this method, manufacturers ship the goods only after the money is deposited in their bank accounts.
Small home appliance manufacturer Foshan Shunde Qifei Electric Co. Ltd and freezer producer Foshan Shunde Weili Kitchen Equipment Co. Ltd only accept TT as form of payment.
Of course, TT is completely risk-free for manufacturers only. On the part of buyers, it requires confidence that their suppliers will deliver on time and adhere to specifications. This is the place…