Payment terms decide how much risk each side carries and how fast an order starts. For PET preform and closure exports, three structures cover almost every deal — the right one depends on order value and how established the relationship is.
The three common structures
| Method | How it works | Best when |
|---|---|---|
| TT (bank transfer) | Deposit to start production + balance before or against shipping documents | Repeat orders, established trust, lower bank cost, faster |
| Irrevocable LC at sight | The buyer bank guarantees payment once compliant documents are presented | First orders or high value — balanced protection for both sides |
| CAD (cash against documents) | The bank releases shipping documents to the buyer on payment | Mid-trust deals — simpler and cheaper than an LC |
A typical first-order shape
A common opening structure is a deposit by TT to start tooling and production, with the balance due against a copy of the bill of lading before release; recurring buyers often move to a confirmed LC or more open terms as the relationship matures. The exact split, currency and documents are always fixed on the proforma invoice — treat the numbers here as an industry orientation, not a quote.
Match it to your Incoterm and timeline
Payment terms sit alongside the Incoterm (who pays freight and insurance) and the lead time. Confirm the delivery basis in the FOB / CFR / CIF guide, check lead time & MOQ, then set everything in one place by building an RFQ — the sales team returns a proforma with the proposed terms.