The payment method of Nigerian customers (1) L/C refers to the certificate that the bank can guarantee payment conditionally. According to the general provisions of this settlement method, the buyer will deposit the payment in the bank first, and the bank will open a letter of credit to inform the seller, and the seller will deliver the goods according to the terms stipulated in the contract and the letter of credit, and the bank will pay for the buyer and assume the payment obligation. For Nigerian letter of credit, we still need to pay attention to soft terms to avoid the risk of collection.
(2) telegraphic transfer. T/T payment method is that your customers remit the money to the foreign exchange bank account designated by your company. It is a traditional trading mode, which is divided into pre-TT and post-TT. The former is to remit all the money directly to the bank account before delivery; The latter is to load the goods first, and remit the money in full after seeing the fax of the bill of lading, which is suitable for large payment. Some Nigerian customers will try their best to ask for D/P terms with you on the pretext that Nigerian banks can't wire large amounts of foreign exchange. We don't agree to such a transaction, because in fact, in Nigeria, there is no limit to the large amount of foreign exchange remitted abroad.
(3) Western Union remittance. Western Union is the world's leading express remittance company, suitable for small private remittances. Just tell the customer your name and nationality, and the customer can pay. Remember the order of last name and first name.
(4) D/P means that the collecting bank can only hand over the commercial (freight) documents to the importer after the importer pays the payment. We must be careful about DP transactions. Try not to make the D/P (collection) clause, because some banks in Nigeria may collude with customers and release documents before customers pay, which will cause losses to our enterprise.