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T/T - payment in advance
T/T means telegraphic transfer, or simply wire transfer. It's the simplest and easiest payment method to use.

T/T payment in advance is usually used when the sample and small quantity shipments are transported by air. The reason why is that the documents like air waybill, commercial invoice and packing list will be sent to you along with the shipment by the same plane. As soon as the shipment arrives, you can clear the customs and pick up the goods with the documents. As it's acknowledged, T/T payment in advance presents risk to the importer if the supplier is not an honest one.

L/C - Letter of credit
An irrevocable Letter of Credit is also an often used payment method. It is often referred to an L/C. Letters of Credit are formal payment methods that offer a lot of protection to the parties.

Simply put, a letter of credit is a letter written by the importer's bank to the exporter. It verifies that the payment will be guaranteed when the bank is presented with the concrete documents (bill of lading, and freight documents). Most letters of credit are "irrevocable" once the importer has had them sent.

A letter of credit usually includes applicant (you, the importer), beneficiary (our I/E agent), opening bank, negotiating bank, specification and quantity of the goods, amount of money, loading port and destination port, shipment date, the validity date of the L/C, terms and conditions agreed by both the importer and seller, and the documents required by the importers (bill of lading, commercial invoice, packing list, insurance certificate, etc.)

The L/C payment procedure is usually as follows:

a. You (the importer) applies to open the L/C to us (the seller) through a bank who can open the L/C in your country.
b. The opening bank will inform receiving bank that the L/C has been opened.
c. Tee receiving bank will inform the seller that the L/C has been established.
d. The seller checks all the terms and conditions listed in the L/C. If all terms and conditions are acceptable, the seller will arrange the shipment within the time specified in the L/C.
e. After the goods are loaded onto the ship without any damage, the captain will issue the clean bill of lading to the seller.
f. We will submit the clean bill of lading and other relevant documents to receiving bank to gather the payment. Only with clean bill of lading can you claim the ownership of the goods.
g. The receiving bank will send the clean bill of lading and relevant documents to your bank (the opening bank).
h. The opening bank will inform you that all documents are received.
i. You will go to the bank to make the payment to get the clean bill of lading and relevant documents.
j. With all of these documents, you can clear the import Customs and pick up the goods after the goods arrive on the destination sea port.

L/C is used for the larger quantity order shipped by sea.

The typical L/C scenario takes 14-21 days to complete.

There is no payment method that is perfectly safe to both the importer and supplier at the same time. But, we still have got to do business, right?

I have worked with many companies in China and most are fine. The QUALITY of the product is more a concern than not being sent anything. Did you get a sample?

Some times (even with L/C) you will find a bunch of non-working products. Sometimes the top layer of a case works fine and underneath is incomplete or broken items. It is important to establish with the factory how these defects are handled and what is an acceptable defect rate.

My guess is you're fine. This is a GUESS, but most companies are just trying to do business.

...Perhaps the most common problem you could be facing is *VERY* high pricing. If what you're paying is your original quote AND they're not charging more for lower quantity, chances are you're paying TOP DOLLAR for your goods. Try to negotiate for a better deal.

Lastly, if this is your first time importing be SURE you understand the frieght charges. If you're importing via AIR understand that you will be charged based on VOLUME WEIGHT and not just the basic weight. This can cost you $1000s if you're getting freight quotes not based on volume weight.

Hope this helps a bit. My guess is they're just fine.