A Payment Suggestion is a proposed payment arrangement put forward by the buyer or seller during negotiations for a specific order in foreign trade. It is not a mandatory payment term, but a reference proposal based on mutual trust, order value, market practice, and risk considerations. Common scenarios include: when a new customer cooperates for the first time, the seller suggests 30% advance payment + 70% against copy of B/L; or the buyer suggests using a letter of credit to protect both parties' interests. Notes: the suggestion should specify payment ratio, time nodes, bank charge allocation, and document requirements; if the other party does not accept it, it can be negotiated and adjusted. The difference from 'Payment Terms' is that the latter is a formal agreement in the contract with legal binding force, while a payment suggestion is only an expression of intent during the negotiation stage. The difference from 'Payment Method' is that the latter refers to specific instruments such as T/T, L/C, D/P, etc., while a payment suggestion may include a combination of multiple methods. Proper use of payment suggestions helps reduce transaction risks and promote deal closing.
📝 Examples
1. For your company's current order, we suggest using 30% T/T advance payment, with the remaining 70% paid against copy of B/L, to balance risks for both parties. (Seller's payment suggestion to a new customer)
2. Due to the large order amount, we suggest using an irrevocable sight letter of credit, confirmed by a bank mutually recognized by both parties. (Buyer's payment suggestion for a large order)
💡 Foreign Trade Tips
Foreign trade terms are the foundation of international business communication
Trade practices may vary slightly by country; pay attention when using them
When using terms in contracts, specify the applicable version (e.g., Incoterms 2020)
For unfamiliar terms, use GlobalSync's multilingual email helper to confirm with your partner