Payment Terms for International Wholesale: TT vs LC for Packaging Supplies

When importing packaging supplies for international wholesale, payment terms play a key role in managing risk, cash flow, and supplier relationships. For buyers sourcing custom packaging, coffee packaging, tea bags, or flexible packaging from China, the two most commonly used payment methods are TT (Telegraphic Transfer) and LC (Letter of Credit).

Understanding how TT and LC work helps buyers choose the most suitable option for their packaging orders.

What Is TT (Telegraphic Transfer)?

TT is the most widely used payment method in the global packaging industry. It refers to a direct bank transfer from the buyer to the supplier.

The standard TT structure is 50% deposit before production + 50% balance before shipment.

Advantages of TT: fast and simple process, lower bank fees, flexible for customized packaging projects, preferred by most packaging manufacturers.

Disadvantages of TT: buyer pays before receiving goods, requires trust when working with new suppliers.

For custom packaging supplies, such as printed coffee bags, tea pouches, or roll film, TT is often necessary because the products are made specifically for one buyer and cannot be resold.

What Is LC (Letter of Credit)?

An LC is a bank-guaranteed payment method where the buyer’s bank promises to pay the supplier once all required shipping documents are presented correctly.

Advantages of LC: strong payment security, reduced risk for new business relationships, suitable for large-value wholesale orders.

Disadvantages of LC: higher bank charges, longer processing time, strict documentation requirements.

Due to the complexity and cost, LC is usually accepted only for large-volume or long-term packaging orders, rather than small or highly customized projects.

TT vs LC: Key Differences

For most buyers importing custom packaging from China, TT remains the most practical and efficient choice.

How to Choose the Right Payment Term

When selecting TT or LC, buyers should consider order size and value, level of customization, supplier relationship and experience and cash flow planning.

Many professional packaging suppliers are open to adjusting payment terms for long-term cooperation.

Conclusion

Both TT and LC are widely used in international wholesale trade. For custom packaging supplies, TT is the industry standard, while LC is better suited for large, standardized orders with established partners.

Choosing the right payment term ensures smoother transactions and long-term supply stability.