Advance payment or a letter of credit: how we take payment on a first order
For a first order we ask for payment in advance or a letter of credit. What each means, and how a letter of credit protects both sides.
The short answerFor a first order we ask for payment in advance or a letter of credit, and the terms are written into the order before anything is made. A letter of credit is a bank's promise to pay the seller when the seller presents documents that match its terms exactly; the bank checks the documents, not the goods.
A first order is a first test for both sides. You have not seen our goods arrive yet, and we have not been paid by you yet. Payment terms decide who carries that risk.
Our terms for a first order
We ask for payment in advance or a letter of credit. The terms are written into the order before anything is made. We do not ship a first order on open credit.
What a letter of credit is
A letter of credit is a bank's promise to pay the seller when the seller presents documents that match the credit's terms exactly. The bank checks the documents, not the goods. Most letters of credit are issued under the International Chamber of Commerce rules known as UCP 600.
How it protects you
Because the bank looks only at documents, ask for the documents that protect you. An inspection certificate is the usual one: it shows the goods were checked before they left. Your bank and your customs broker can tell you which documents to ask for in your country.
How it protects us
We are paid when we present matching documents, not when the goods are judged at the other end. So we prepare the papers carefully, and we agree them with you before the order starts.
Which to choose
Which suits you depends on the order and on your bank. We describe how they work; the choice and the bank terms are yours and your bank's.
Ask us about an order. We reply by email within a working day.
Sources
- Vaishvik Exports LLP, Payment terms, as published on vaishviks.com, live since 22 Sep 2026.Advance payment or a letter of credit for a first order, written into the order before anything is made.
- International Chamber of Commerce, Uniform Customs and Practice for Documentary Credits (UCP 600), as described on our questions page, read 23 Sep 2026.Most letters of credit are issued under UCP 600; the bank checks documents, not goods.