Conclusion first:There is no payment method that can cover all orders-small new customers will have priority in T/T prepayment and increased proportion of deposit, large or new market customers will use letters of credit, e-commerce retail and small and medium-sized high-frequency orders will be handed over to third-party platforms, mature foreign trade factories should be used in combination. The reason why the selection has become urgent is because the environment is changing: on September 28, the central parity of the RMB against the US dollar was reported at 6.7399, an increase of 90 basis points, a record high since February 2023. The cumulative appreciation of the onshore RMB during the year is approximately 4.13%(Shanghai securities news); at the same time, SCFI rose to 3686 points for eight consecutive weeks. Starting from October 1, the US line GRI will charge an additional US$2000 to US$3000 per 40-foot cabinet (Shanghai shipping exchange）。The longer the accounting period, the more profits will be eaten away by fluctuations in exchange rates and costs.
Let's look at the general environment first: Collection methods are affecting real profits
General Administration of Customs of China data shows that in the first eight months of 2026, my country's imports and exports were 34.78 trillion yuan, a year-on-year increase of 17.6%, with private enterprises accounting for 56.9%(General Administration of Customs of China）。Orders are rising, but if the collection terms are not properly designed, a RMB appreciation of about 4% will be enough to erase a large chunk of the profit of one order. The choice of payment method is essentially a balance of three things: the speed of payment, who bears the risk, and whether the customer can accept it. The following is disassembled one by one according to the method.
T/T: The most common use, the terms must be written firmly
T/T (wire transfer) is the mainstream settlement method for my country's foreign trade exports. It is flexible, quick to receive accounts, and relatively simple procedures. Practical points:
- New customers: It is recommended to make a deposit of 30% to 50% in advance, and the balance will be paid in accordance with a copy of the bill of lading; for old customers and the cooperation has completed a certain period, you can talk about the prepayment ratio again, but the bottom line must be kept;
- The full name of the collection account and the SWIFT code are clearly stated in the contract, and the account header must be consistent with the company to avoid compliance issues caused by third-party payment;
- The right to goods will not be waived before the final payment is paid, and the selection of original bill of lading, telex release, and sea waybill must be linked to the collection progress;
- Be cautious in accepting large T/T orders after full amount: Once abandoned goods are encountered, the freight plus storage at the port of destination may exceed the value of the goods itself.
Letter of credit: Document compliance is the lifeline
The letter of credit (L/C) is suitable for large orders, first-time cooperation customers in the Middle East, Africa, and South America, and bidding projects. Bank credit is used to replace commercial credit, provided that the items are consistent and the documents are consistent. Practical reminder: Before receiving the certificate, check the credit standing of the issuing bank and the risk of the country where it is located; review the order item by item and do not accept soft terms (for example, the inspection certificate must be signed and confirmed by the applicant); sufficient operating margin must be reserved for the submission period, validity period, and latest loading period to avoid deducting fees or even refusing to pay for discrepancies. It is best for the document clerk to prepare a full set of document templates before booking the shipping space and check them while shipping, rather than delay them until the eve of delivery. In addition, who will bear various expenses such as L/C issuance fees, negotiation fees, and telegram fees must be clearly stipulated in the contract in advance to avoid wrangling afterwards.
Third-party platform: supplement to small amounts of high-frequency
Cross-border e-commerce platforms and third-party channels such as independent station collection are suitable for small and medium-sized, retail, and high-frequency orders. The advantages are platform credit endorsement, low threshold for buyers to place orders, clear capital flow paths, and platform rules to follow for disputes; the point of attention is that there are fund precipitation cycles, withdrawal and exchange rate conversion costs, as well as risks of changes in platform rules, and specific rates and arrival The accounting cycle is subject to bank or platform announcements. It is recommended to use it as a supplement to the main settlement method, rather than all, to avoid the risk of the capital chain caused by a single channel.
For these new risks, plans must be included in the collection terms
There are three things to focus on in the near future: First, foreign exchange controls in some regions such as the Middle East have tightened, resulting in delays in foreign exchange collection or rising risk of bad debts. Orders in this region should be increased in advance or a spot letter of credit should be required; Second, the United States will strictly check the qualifications of IOR importers since September 18. If there is a problem with the customer's customs clearance qualifications, both the goods and payment may be stuck. Customers can be required to provide relevant qualification information of the importer and keep it before signing the contract; Third, exchange rate fluctuations have increased. The experience of listed companies in locking foreign exchange shows that evaluating the hedging effect depends on the three accounts of operation, accounting, and cash flow. Book exchange losses do not mean hedging failure. Factories can communicate with banks based on their own exposure. Tools such as long-term settlement.
Comparison of T/T, letters of credit, and third-party platforms
| dimension | T/T wire transfer | L/C | third-party platforms |
|---|---|---|---|
| Typical accounting period | Prepaid and see a copy of the bill of lading for quick payment | Documents presented for negotiation after shipment, with cycles of several weeks | Loan is issued after confirmation of receipt, with a sedimentation period |
| cost | Bank fees are the main ones, which are relatively low | Fees for L/C issuance, negotiation, discrepancies, etc. are high | Subject to the platform announcement rate and withdrawal cost |
| applicable scenarios | Return orders from old customers, medium and small orders | Large orders, higher country risk markets | E-commerce retail, small-amount high-frequency |
| main risks | The final payment is in arrears and the customer abandons the goods | Document discrepancies, soft terms | Rule changes, capital precipitation |
3 issues that factory owners are most concerned about
The customer insists on full T/T. Can he accept it?
Let's look at three points first: customer credit and cooperation records, whether export credit insurance can be insured, and the proportion of single amount in annual sales. If two of the three items fail, they will require an additional prepayment or a change to a sight letter of credit. I'd rather take a slow order than gamble on the goods once.
If the RMB appreciates, should the quotation be locked in the exchange rate?
For large orders and long-delivery orders, it is recommended to stipulate an exchange rate adjustment mechanism in the contract, or manage exposure through bank forward settlement; for small orders, the pace of payment can be accelerated to hedge. The criterion for judgment is whether the cash flow is safe, not the profit and loss for a while on the book.
What should I do if the letter of credit is cited for inconsistency?
First distinguish between substantive discrepancies and spelling defects: for minor issues, you can apply for cable guarantee negotiation, or negotiate with the applicant to change the order; for substantive issues, you can immediately contact the customer to confirm acceptance of the discrepancies in writing, evaluate the control rights of the goods, and initiate resale or return plans if necessary.
Conclusion and action recommendations
There is no standard answer to the payment method, only a reasonable combination dynamically adjusted according to the order amount, customer credit, and country. Core principles: New customers collect money first, use bank credit for large amounts, use the platform for small amounts, proactively manage exchange rate exposure, and regard collection terms as important negotiation content as product quotations. If you want to evaluate your factory's overseas plans, you can contact Qihang AI (telephone 180-0327-6609).
This article was written by Qihang Zhilian Trade Research Institute and released on September 26, 2026.
