Q:  How do I finance my overseas shipments?

A:  Quite often the supplier or factory will request 100% prepayment or a payment via a Transferable Letter of Credit (L/C). China still operates as a cash culture and our American credit culture can be a foreign concept. This is especially true when a relationship has not been well established. However, even with an established relationship, most factories still require 40% down to facilitate purchase of raw materials specific to your order.Legacy prefers to use a Transferable Letter of Credit but often extends credit terms to our clients to bridge the cash/credit cultural divide. A credit application and credit approval is always required. Depending on the credit extended, specific transaction terms, and requirements from the suppliers, we most often will ask for 1/3 down, 1/3 following our final inspection prior to shipping, and the remaining balance paid Net 30. Without approved credit we typically require 75% down balance Net 30.