Tt before shipment什麼意思

"TT before shipment" is a term commonly used in international trade and finance, where "TT" stands for "Telegraphic Transfer," which is a type of bank transfer. In this context, "before shipment" means that the payment is to be made before the goods are shipped.

Here's the explanation of the term:

• "TT" refers to a method of payment where a buyer instructs their bank to send money to the seller's bank account. This is a common method for making large or international payments.
• "Before shipment" indicates the timing of the payment. The seller is requesting that the buyer make the TT payment before the goods are dispatched. This is known as "pre-shipment finance" or "pre-shipment payment."

In international trade, the terms of payment are crucial. Pre-shipment payment carries some risks for the buyer, as they are paying for goods that have not yet been delivered. The seller, on the other hand, receives payment upfront, which can be beneficial for their cash flow. However, the seller assumes the risk of non-payment if they ship the goods before receiving the money.

To mitigate these risks, international trade often involves the use of letters of credit (LC) or other secure payment methods that ensure that the payment is made only upon the fulfillment of certain conditions, such as the presentation of shipping documents or the arrival of the goods at the destination port.

In summary, "TT before shipment" means that the buyer is expected to make a bank transfer to the seller's account before the goods are shipped. This term is used in contracts, invoices, and other trade documents to specify the payment terms.