Full Payment

Full Payment means the buyer pays the entire amount of the goods in one lump sum before or at the time of delivery by the seller. It is a payment method in international trade that is most favorable to the seller. It is commonly used in small transactions, custom-made products, first-time cooperation, or when the buyer's credit is poor. When using Full Payment, the seller usually requires the buyer to remit the full amount by telegraphic transfer (T/T) to a designated account before shipment, and production or shipment is arranged only after the funds arrive. Points to note include: the contract must specify the timing of Full Payment (e.g., 'within 3 days after signing the contract' or 'before shipment'), the currency, and the party bearing bank charges; for large transactions, the buyer may refuse due to funding pressure, in which case a deposit plus balance payment can be considered. Unlike 'Advance Payment', Full Payment emphasizes 100% payment, while advance payment usually covers only part of the amount; compared with 'Letter of Credit' (L/C), Full Payment does not rely on bank credit and has simpler procedures, but the buyer bears higher risk. In addition, after the full payment is received, the seller should issue a receipt confirmation and pay attention to foreign exchange controls and tax compliance.