---
title: "Payment Terms for Food Imports: T/T, L/C and Open Account — LiangduSyrup"
url: "https://liangdusyrup.com/payment-terms-for-food-imports-t-t-l-c-and-open-account/"
date: 2026-09-28
---

# Payment Terms for Food Imports: T/T, L/C and Open Account

Payment terms are where trust, risk and cash flow meet. Suppliers want certainty of payment; buyers want certainty of goods. The right structure balances both.

The main options
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- **Telegraphic transfer (T/T):** simple and fast. A deposit protects the seller; a balance on documents protects the buyer.
- **Letter of credit (L/C):** the bank guarantees payment against compliant documents. Secure for both sides, but paperwork-heavy and costly.
- **Documentary collection:** the bank releases documents on payment or acceptance, cheaper than an L/C but less secure.
- **Open account:** supplier ships and you pay later. Best for trusted, repeat relationships.

Structuring a first order
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A common compromise is a modest deposit with the balance against a copy of the bill of lading or after a quality certificate. This reduces the buyer’s exposure without forcing the seller to carry all the risk.

**Buyer tip:** never send a 100% advance to an unproven supplier, however attractive the price.

Building toward open account
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As a relationship proves itself shipment by shipment, shift terms gradually. Documented reliability, not a single good shipment, should earn better terms.