What are the payment terms typically used when buying from Pakistani suppliers?
Expert Answer
Standard payment terms with Pakistani manufacturers: 1) T/T (Telegraphic Transfer): 30% deposit with order, 70% before shipment—most common and accepted, 2) Letter of Credit (L/C): Used for large orders ($50,000+), provides security for both parties, 3) Open Account (O/A): Available only to established long-term clients (Net 30/60/90), 4) Western Union/MoneyGram: For small sample orders only ($100-500), 5) Alibaba Trade Assurance: For suppliers with Alibaba presence. Pakistani manufacturers generally expect deposits and are cautious about open terms with new clients. Escrow services are less common than in China. Sourxera offers secure payment handling and buyer protection for all transactions.
Key Insight
Standard payment terms with Pakistani manufacturers: 1) T/T (Telegraphic Transfer): 30% deposit with order, 70% before shipment—most common and accepted, 2) Letter of Credit (L/C): Used for large orders ($50,000+), provides security for both parties, 3) Open Account (O/A): Available only to established long-term clients (Net 30/60/90), 4) Western Union/MoneyGram: For small sample orders only ($100-500), 5) Alibaba Trade Assurance: For suppliers with Alibaba presence.
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