Two Payment Methods, One Goal: A Safe Transaction
For first-time importers, payment terms are often the most intimidating part of buying peanuts from China. The good news: the industry runs on two well-established methods — T/T (telegraphic transfer) and L/C (letter of credit) — and both protect both sides when used correctly. Here is a plain-English guide.
What Is T/T Payment?
T/T means the buyer transfers money directly from their bank to the supplier’s bank. In the peanut trade, the standard structure is:
- 30% deposit after the contract is signed and the PI (proforma invoice) is confirmed
- 70% balance before shipment — typically against a copy of the shipping documents
Jinkai Foods operates exactly this policy. The deposit covers raw material procurement and production; the balance is due once production is complete and the shipping documents are ready. This is the most common and fastest payment method in Chinese peanut exports.
What Is L/C Payment?
An L/C (letter of credit) is issued by the buyer’s bank, promising to pay the supplier once the required documents are presented — a clean bill of lading, inspection certificates, and other agreed papers. For peanut trade, an L/C at sight is standard: payment is made when the documents are presented and verified.
L/C is the preferred method for:
- Large order values — where the buyer wants bank-level security
- First transactions — when neither side has trading history
- Buyers in certain regions — where bank financing requires L/C documentation
T/T vs L/C: Which Should You Choose?
| Factor | T/T | L/C at Sight |
|---|---|---|
| Speed | Fast — days from deposit to shipment | Slower — bank processing adds time |
| Cost | Low bank fees | Higher fees (issuance, confirmation, amendment) |
| Flexibility | High — easy to adjust quantities or dates | Lower — changes need bank amendments |
| Security for buyer | Moderate — documents sent against balance | High — bank verifies documents before paying |
| Best for | Most orders, repeat business, trial orders | Large first orders, buyer’s bank requirements |
For most peanut orders — including trial orders from 5 tons — T/T is simpler, faster, and cheaper. For large first-time contracts, L/C at sight adds a layer of bank-verified security that many procurement teams appreciate.
Price Terms: FOB, CIF, CNF, EXW
Beyond payment method, agree on the price term so both sides know exactly what is included:
- FOB (Free On Board) — supplier handles inland transport and loading at the port. For peanuts: FOB Qingdao; for sunflower and pumpkin seeds: FOB Tianjin or Dalian
- CNF / CFR — supplier also pays ocean freight to the destination port
- CIF — supplier pays freight and insurance
- EXW — the factory price; buyer arranges all transport and export formalities
At Jinkai Foods we quote all four terms, so you can choose what matches your logistics setup best.
What Documents Do You Receive?
Whichever payment method you choose, your shipment comes with a complete document package:
- Commercial invoice and packing list
- Bill of lading
- Certificate of origin
- Phytosanitary certificate (where required)
- Quality test reports — moisture, impurity (≤0.5%), size, and aflatoxin (EU: <5 ppb)
- Certification copies — ISO 22000, HACCP, BRCGS, Halal, and others as requested
Questions About Payment?
Every buyer’s situation is different, and we are happy to recommend the payment structure that fits your order size, country, and banking arrangements. Get in touch through our contact page, and our team — 20 years in the peanut export business — will walk you through it. For quick answers on MOQ, delivery, and specifications, check the FAQ page first.