On the off chance that we don’t go in insight regarding definition and profound parameters, I will call this trademark – ‘ Business is money’. In spite of the fact that businessperson make the most of his everyday life in exchange, if a misfortune happens in business, everything breakdown. So payment of any business continues assumes a critical job than some other jobs in business. Now-a-days for few manufacturers payment on delivery bangladesh has been acceptable.

best payment term Bangladesh clothing manufacturers - Which One The Best Payment Term Bangladesh Manufacturers Prefer

The vast majority of the novices of international business may stress over the terms of payment. Since, in contrast to other household business, you are managing a purchaser who arranges a large number of miles from your place crossing fringes of your nation. You could conceivably know the money related condition or credit value of your purchaser. You may not be meeting the purchaser by and by at beginning stage, may not know about the particular strategy of exchange of purchaser’s nation, no thought regarding political status or common cataclysm odds of the locale etc.

Payment term in any business is a noteworthy piece of offers contract. Terms of payment in fares and imports assumes a critical job in universal business. What are the distinctive kinds of method of payment in fares and imports?

In any business be it in Retail, Wholesale or Export the most delicate point is payment and how it will be dispensed. Around 90% of new business bargains fell through on account of concession to Payment terms. In any case, this is all the more thus, basic in Wholesale and much more in fare exchanges. Payment terms in Bangladesh varies from different suppliers to buyers.

L/C or letter of credits put basically is a Bank Guarantee of payment after showing supporting reports as evidence of sending the item to the purchasers. Here the arrangement is done between the exporters and shippers puts money for benefit on their customers. All terms are concurred in composed reports and disparities in accommodation will mean the Bank won’t dispense the store until redress.

T/T or Telegraphic Transfer or message exchange, regularly shortened to TT, is a notable term used to allude to one of the type of trade of money which occurs in a portion of the nations for ex (uk). An exchange charge is frequently charged by the sending bank and sometimes by the receiving bank. In the Simplest way, T/T implies sending the cash to the merchants account before the Shipment occurs or Advance Payments. All manufacturers payment on delivery bangladesh are not same.

The Main Benefits of L/C are:

For Sellers:

  • After Documentation the L/C is Irrevocable (except if generally referenced, so, as long as vender does his part right, installment is guaranteed from Bank).
  • The merchant will get legitimate details of item, quality standard and explicit shipment Date.
  • The chance to get financing in period.

For Buyers:

  • The Buyer can control the timeframe for Shipping of merchandise.
  • By a letter of credit, the purchaser shows his dissolvability;
  • Maintains a strategic distance from Pre-payment.

In most global Import Payment, L/C is utilized for the security it brings for Buyers and dealers. Besides, In Bangladesh, T/T is the most favored by the factories and exporters.

The Main Benefits of T/T are:

For Sellers:

More often than not, for making garments and other products, an acquisition of raw materials is included. Most little factories do not have the free money to acquire it. What’s more, for small orders or Small manufacturers the banks aren’t willing for advance payment or Partial encashment of L/C or loan.

To get advance from bank an extra premium should be paid. Also factories have to deposit money or assets to bank to get the permission of opening BTB LC against the master LC.

Without legitimate Financial Backing or exchanges a Bank won’t open L/C for the organization. For this reason, most of the small factories and even many big companies in Bangladesh prefer T/T payment from customers.

For Buyers:

Opening L/C is expensive way to pay sellers. When buyers will have to buy their products from many sellers, they have to open individual L/C. Bank charge well for opening a L/C, documentations and transferring payment. On the other hand, T/T is less expensive than L/C. It can be made online from your computer anytime during banking hours. Documentation is not a part of banking job here.

However, small manufacturers can buy raw materials after getting the advance T/T by cash which reduce the product cost as well. So buyer can be offered with low price based on T/T payment.

When all is said in done, L/C process is protracted and most exporters needs to maintain a strategic distance from it completely for the problem. Specially uniform manufacturers in Bangladesh prefer TT payment as they have to import fabrics from overseas against BTB L/C which is easy to be opened.


In Bangladesh, T/T and L/C both are broadly utilized, it mostly relies upon the situation. T/T is an unquestionable requirement even as a fractional development from generally manufacturers. Some will even need 100% of it as development. L/C is utilized for the most part the enormous organizations and the Medium Size Enterprises that has a solid business office with commercial department. In any case, T/T senders will probably have a solid trading control over the providers as the installment is gotten as development. Few are accepting manufacturers payment on delivery bangladesh which is new. Notwithstanding, without a solid agent it is typically not encouraged to send T/T except if you are sure about the whole exchange.